Jane is maximizing total utility while consuming food and clothing. Her marginal utility from food is 50 and her marginal utility from clothes is 12.5. If food is priced at $20 per unit the price of clothing per unit must be: a- 2.50 b- 2 dollars C- 5S

Jane is maximizing total utility while consuming food and clothing. Her marginal utility from food is 50 and her marginal utility from clothes is 12.5. If food is priced at $20 per unit the price of clothing per unit must be: a- 2.50 b- 2 dollars C- 5S

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 8RQ: Is it possible for total utility to increase while marginal utility diminishes? Explain.

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Question

Jane is maximizing total utility while consuming food and clothing. Her marginal utility from food is 50
and her marginal utility from clothes is 12.5. If food is priced at $20 per unit the price of clothing per unit
must be:
a- 2,50
b-2 dollars
C- 5$
d- 20$

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