Assume That a and B Are Both Priced at $1

question 232

Multiple Choice

Assume that A and B are both priced at $1 per unit and that Mary has $10 to spend on A and B. She buys 6 units of A and 4 units of B. The marginal utility of the final unit of A bought is 12, and that of B is 8. This indicates that

• A)Mary's consumption is in equilibrium.
• B)given another dollar, Mary should buy an additional unit of B.
• C)to maximize utility, Mary should buy more of B and less of A.
• D)to maximize utility, Mary should buy more of A and less of B.

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Definitions:

Sitting Shiva

A week-long period of mourning in Jewish tradition, observed by the immediate family members of the deceased, marked by staying at home and receiving visitors.

Jewish Faith

A monotheistic religion characterized by beliefs in the Torah as the foundational scripture, along with the cultural and legal traditions embedded in Jewish life and history.

Midlife Adults

Individuals typically ranging from around 40 to 65 years old, often experiencing significant life reevaluations and transitions.

Mourning

The ceremonies and rituals a culture prescribes for expressing bereavement.