Basil Is Maximizing His Utility from Consuming Tea and Crumpets

question 142

Multiple Choice

Basil is maximizing his utility from consuming tea and crumpets.If the marginal utility of the last crumpet was 32 units of utility and the prices of tea and crumpets are $4 and $8, respectively, what was the marginal utility of the last cup of tea Basil consumed?

• A)2 units of utility
• B)12 units of utility
• C)$6
• D)128 units of utility
• E)16 units of utility

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Definitions:

Method of Elimination

A technique used in algebra to solve systems of equations by canceling out one or more variables.

System of Equations

A set of equations with multiple variables, where the solution is the set of values that satisfies all equations simultaneously.

Method of Elimination

A technique for solving systems of linear equations by adding or subtracting equations in order to eliminate one of the variables.

System of Equations

A set of equations with the same variables, where the solution must satisfy all the equations in the system simultaneously.