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Suppose that Ms. Thomson is currently exhausting her money income by purchasing 10 units of A and 8 units of B at prices of $2 and $4, respectively. The marginal utility of the last units of A and B are 16 and 24, respectively. These data suggest that Ms. Thomsona. has preferences that are at odds with the principle of diminishing marginal utility.
b. considers a and b to be complementary goods.
c. should buy less a and more b.
d. should buy less b and more a.

Respuesta :

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Answer:

D) should buy less b and more a.

Explanation:

the marginal utility obtained from consuming the last unit of A = 16 / $2 = 8 utils per dollar

the marginal utility obtained from consuming the last unit of B = 24 / $4 = 6 utils per dollar

Ms. Thomson should purchase less units of B or more units of A until the marginal utility provided by each good is equal.

Answer:

D. should buy less B and more A

Explanation:

AP Classroom

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