Examlex

Solved

Antonio Derives More Utility from Spending an Additional Dollar on Wool

question 21

Essay

Antonio derives more utility from spending an additional dollar on wool boots than on wool gloves.We can assume that:
A.the marginal utility per dollar spent on boots is greater than the marginal utility per dollar spent on gloves.
B.the marginal utility per dollar spent on boots is equal to the marginal utility per dollar spent on gloves
C.the marginal utility per dollar spent on boots is less than the marginal utility per dollar spent on gloves.
D.the price of boots is less than the price of gloves.


Definitions:

Economically Desirable

Attributes or actions that are beneficial from an economic standpoint, promoting efficiency, growth, or productivity.

Producer Surplus

The difference between the amount producers are willing to supply a good for and the actual amount they receive by selling it.

Market Price

The current price at which a goods or service can be bought or sold in a particular market.

Consumer Surplus

The gap between what consumers are prepared and capable of paying for a product or service and what they end up spending.

Related Questions