Scenario 4.1: Daniel Derives Utility from Only Two Goods, Cake (Qc) and (Qc)

question 69

Multiple Choice

Scenario 4.1:
Daniel derives utility from only two goods, cake (Qc) and donuts (Qd) . The marginal utility that Daniel receives from cake (MUc) and donuts (MUd) are given as follows:
MUc = Qd MUd = Qc
Daniel has an income of $240 and the price of cake (Pc) and donuts (Pd) are both $3.
-See Scenario 4.1. What is Daniel's budget constraint?

• A) 240 = 3Pc + 3Pd
• B) 240 = 3Qc + 3Qd
• C) 240 = (Pc)(Qc)
• D) 240 = (Qc)(Qd)
• E) none of the above

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