-If the price of A is $3 and the price of B is $5, then, in a consumer optimum
A) the quantity purchased of B must be 60 percent of the quantity of A purchased.
B) the quantity purchased of B must be 67 percent of the quantity of A purchased.
C) the marginal utility of B must be 67 percent more than the marginal utility of A.
D) the marginal utility of A must equal 3 and the marginal utility of B must equal 5.

Question

-If the price of A is $3 and the price of B is $5, then, in a consumer optimum
A) the quantity purchased of B must be 60 percent of the quantity of A purchased. 
B) the quantity purchased of B must be 67 percent of the quantity of A purchased. 
C) the marginal utility of B must be 67 percent more than the marginal utility of A. 
D) the marginal utility of A must equal 3 and the marginal utility of B must equal 5.

Quizplus · Accepted Answer

In consumer optimum, the ratio of marginal utilities should equal the ratio of prices. Therefore, the marginal utility of B should be 67% more than that of A to match the price ratio of 5/3.

-If the Price of a Is $3 and the Price