Lin Is Maximizing Total Utility While Consuming Food and Clothing

question 51

Multiple Choice

Lin is maximizing total utility while consuming food and clothing.Her marginal utilities of food and clothing are 50 utils and 25 utils,respectively.If clothing is priced at $10 per unit,the price of a unit of food

• A)must be rising
• B)must be falling
• C)must equal $10 as well
• D)must equal $20
• E)cannot be determined without additional information.

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