Sarah Can Consume Either Pizzas or Hamburgers

question 64

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 MUh be the marginal utility of hamburgers and MUp be the marginal utility of pizzas. In consumer equilibrium, what must the ratio MUh/MUp equal?

• A)1/5
• B)5/1
• C)1/1
• D)1/6
• E)4

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