Suppose That Utility-Maximizing Consumers in San Francisco Pay Three Times

question 5

Multiple Choice

Suppose that utility-maximizing consumers in San Francisco pay three times as much for apples as for peaches.What is the ratio of the marginal utility of apples to the marginal utility of peaches?

• A)1/3
• B)2/3
• C)3
• D)none of the above
• E)cannot determine without further information

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Definitions:

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Environment

Refers to the surrounding conditions and factors that affect living organisms, including natural, cultural, and built environments.

Perceptual Distortions

Misinterpretations or misunderstandings of sensory input due to biases, prejudices, or errors in judgment.

Framing

The way information is presented or organized to influence people’s perceptions, decisions, and judgments.