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:

Agriculture

The science, art, and practice of cultivating plants and livestock, marking a key development in the rise of sedentary human civilization.

Food Production

The process of cultivating food crops and raising animals for consumption, an essential component of human civilization and survival.

Independent Invention

the process through which different societies or cultures independently create or discover similar technologies, practices, or ideas without direct influence from each other.