Tom Spends $20 a Month on CDs and Magazines

question 11

Multiple Choice

Tom spends $20 a month on CDs and magazines. The price of a CD is $6 and the price of a magazine is $4. When Tom maximizes his utility, the marginal utility from CDs is ________ the marginal utility from newspapers.

• A) the same as
• B) 1/2
• C) 20 times
• D) 1 1/2 times