Shelley Is Maximizing Utility in Her Consumption of Mansions and Porsches.If

question 55

Multiple Choice

Shelley is maximizing utility in her consumption of mansions and Porsches.If the marginal utility from her last purchased mansion is twice the marginal utility from her last purchased Porsche,then we know

• A)Shelley buys twice as many mansions as Porsches.
• B)Shelley buys twice as many Porsches as mansions.
• C)Shelley buys more Porsches than mansions,but we do not know how many more.
• D)the price of a mansion is twice the price of a Porsche.
• E)the price of a Porsche is twice the price of a mansion.

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Definitions:

Consumer Equilibrium

A state where an individual's consumption choices provide maximum satisfaction or utility given their budget constraints.

Total Utility

The overall satisfaction or happiness a consumer derives from consuming a certain amount or combination of goods and services.

Olive Oil

A liquid fat obtained from olives, a traditional tree crop of the Mediterranean Basin, used in cooking, cosmetics, and as a fuel.

Dish Soap

A cleaning product used to wash dishes, cut through grease, and sanitize kitchenware.