Suppose the Marginal Utility (MU)of Paperback Books Is 40 Utils

question 85

Multiple Choice

Suppose the marginal utility (MU) of paperback books is 40 utils and each costs $5 while the MU of DVD rentals is 20 utils and each rents for $4.If you consume one movie and one book per week,are you attaining consumer equilibrium?

• A) Yes, so there is no need to change.
• B) No. You need to buy more books and rent fewer DVDs.
• C) No. You need to rent more DVDs and buy fewer books.
• D) There is not enough information to answer the question.

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Definitions:

Trilinguals

Individuals who are fluent in three languages.

Monolinguals

Individuals who speak only one language fluently.

Lexical

Relating to the words or vocabulary of a language.

Phonetic

Concerning the sounds of human speech and the system of producing and describing these sounds.