Jane Is Maximizing Total Utility While Consuming Food and Clothing

question 21

Multiple Choice

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

• A)be rising.
• B)be falling.
• C)equal $5.
• D)equal $20.

---

Definitions:

Top-down Approach

A problem-solving strategy that starts with the big picture before breaking it down into smaller, more manageable parts.

Schema-inconsistent

Pertains to information or events that do not fit within existing cognitive frameworks or expectations.

Highly Salient

Something that stands out conspicuously or is most noticeable in a particular context.

Primacy Effect

The inclination to recall information more effectively when it's introduced initially than when it comes later.