Sarah Can Consume Either Pizzas or Hamburgers

question 102

Multiple Choice

Sarah can consume either pizzas or hamburgers.The price of a hamburger is $1 and the price of a pizza is $5.Let MU_h be the marginal utility of hamburgers and MU_p be the marginal utility of pizzas.In consumer equilibrium,what must the ratio MU_h/MU_p equal?

• A)1/5
• B)5/1
• C)1/1
• D)1/6
• E)4

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