Shelley Is Maximizing Utility in Her Consumption of Mansions and Porsches

question 67

Multiple Choice

Shelley is maximizing utility in her consumption of mansions and Porsches. If the marginal utility of her last purchased mansion is twice the marginal utility of 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:

Function

A relation between a set of inputs and a set of permissible outputs with the property that each input is related to exactly one output.

Vertices

Plural of vertex, referring to the corners or angular points where two or more edges meet in a geometrical shape or graph.

Center

In geometry, it refers to the midpoint of a circle or sphere, equidistant from all points on the perimeter or surface.

Standard Form

A way of writing down very large or very small numbers easily. In algebra, it refers to the usual way of writing down equations, focusing on linear equations with the general form Ax + By = C.