If Raul's Marginal Utility Per Dollar from Bread Is 25

question 46

Multiple Choice

If Raul's marginal utility per dollar from bread is 25 and the marginal utility per dollar from butter is 30,

• A) rail should purchase more butter and less bread to increase his total utility.
• B) Raul's marginal utility from butter will fall if he buys more butter.
• C) Raul's marginal utility from bread will rise if he buys less bread.
• D) Only answer B and answer C are correct.
• E) Answer A, answer B, and answer C are correct.

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Definitions:

Loan

A sum of money or other resources that is lent to an individual, organization, or entity, typically requiring repayment with interest.

Hire-Purchase Agreement

A contract where one pays for a product in regular installments while having the ability to use it, with ownership transferring after the final payment.

Chattel Mortgage

A mortgage in which the title to a chattel owned by the debtor is transferred to the creditor as security for the payment of a debt.

Conditional Sales Contract

A contract arrangement in which the sale is conditional upon specific terms, with the transfer of ownership from the seller to the buyer occurring only after these conditions are met.