Suppose the Price of a Pair of Jeans Is $25

question 103

Multiple Choice

Suppose the price of a pair of jeans is $25 and the price of a T-shirt is $15.The consumer's budget is entirely allocated.If the marginal utility from a pair of jeans is 100 units and the marginal utility from a T-shirt is 75 units,the consumer is

• A) in equilibrium because his or her utility is maximized.
• B) not in equilibrium and should purchase fewer jeans and more T-shirts.
• C) not in equilibrium and should purchase fewer T-shirts and more jeans.
• D) not in equilibrium but should maintain the current level of purchases.
• E) not in equilibrium and should purchase more T-shirts and more jeans.

---

Definitions:

Photoperiod Comparisons

The study of how organisms respond to the lengths of day and night, affecting their physiological processes.

Reservation Server

A computer server that manages the booking and reservation of resources or services, commonly used in industries like hospitality for room reservations.

Fluorescent Lights

A type of lighting technology that uses a chemical reaction involving gases and mercury vapor to produce light, known for its energy efficiency compared to incandescent bulbs.

Machinery

Mechanical devices or assemblies, usually powered by motors or engines, designed to perform specific tasks.