Suppose Renee can increase her total utility from consuming video rentals and books by buying one more book and renting one fewer video.Which of the following is true?
A) The marginal utility of video rentals is negative.
B) The marginal utility per dollar spent on books exceeds that of video rentals.
C) The marginal utility of the last book consumed exceeds the marginal utility of the last video rental consumed.
D) The marginal utility of the last video rental consumed exceeds the marginal utility of the last book consumed.
Correct Answer:
Verified
Q85: The income effect of a price change
Q86: The French Bakery ran a special which
Q87: Table 10-7 Q88: The substitution effect of an increase in Q89: A change in the price of a Q91: If you received negative marginal utility from Q92: When diminishing marginal utility sets in, total Q93: If Lisa spends her income on veggie Q94: The income effect of a decrease in Q95: The income effect of a decrease in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents