Suppose Joe Is Maximizing Total Utility Within His Budget Constraint

question 19

Multiple Choice

Suppose Joe is maximizing total utility within his budget constraint.If the price of the last pair of jeans purchased is $25 and it yields 100 units of extra satisfaction and the price of the last shirt purchased is $20, then, using the rule of equal marginal utility per dollar spent, the extra satisfaction received from the last shirt must be

• A)2,000 units of utility.
• B)500 units of utility.
• C)100 units of utility.
• D)80 units of utility.

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Definitions:

Self-Enhancement

The tendency to describe or present oneself using positive or flattering attributes often for personal gain or increased self-esteem.

Cultural Heritage

Refers to the legacy of physical artifacts and intangible attributes of a group or society passed down from previous generations.

Sociohistorical Context

The intersection of social and historical factors that influence and shape events, circumstances, or phenomena.

Self-Reliant

Capable of relying on one's own powers and resources rather than those of others.