Max Has $35 a Day to Spend,and He Can Spend

question 25

Multiple Choice

Max has $35 a day to spend,and he can spend as much time as he likes on his leisure pursuits.Windsurfing equipment rents for $10 an hour,and snorkeling equipment rents for $5 an hour.If Max equalizes the marginal utility per hour from windsurfing and from snorkeling,he

• A)maximizes his total utility.
• B)can increase his total utility by spending less time windsurfing and more time snorkeling.
• C)can increase his total utility only if the price of windsurfing equipment rentals decreases.
• D)can increase his total utility by spending more time windsurfing and less time snorkeling.
• E)maximizes his marginal utility per dollar.

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Definitions:

Budget Constraint

A representation of all the combinations of goods and services a consumer can afford, given their income and the prices of goods.

Bell Pepper

A type of sweet pepper that comes in various colors including red, green, and yellow, often used in cooking for its mild flavor.

Black Beans

A type of legume that is dark in color and rich in protein, often used in various cuisines around the world for their nutritional benefits and versatile uses in cooking.

Budget Constraint

The limitations on the consumption choices of an individual or organization due to limited resources or income.