Author Question: Katie finds that the marginal utility from a compact disc is 30 and the marginal utility from a ... (Read 146 times)

Cooldude101 · **on:** Jun 29, 2018

Katie finds that the marginal utility from a compact disc is 30 and the marginal utility from a pizza is 10. The price of a compact disc is 15 and the price of a pizza is 10. In order to increase her utility, Katie should

A) consume more compact discs and fewer pizzas.
B) consume fewer compact discs and more pizzas.
C) not change her consumption of pizza and compact discs.
D) consume fewer compact discs and fewer pizzas.

Question 2

Which of the following is TRUE regarding markets? I) Economists define a market as a geographic location where trade occurs. II) A market enables buyers and sellers to get information about each other and to buy and sell from each other.

III) Markets coordinate decisions through prices. A) I only
B) I and III
C) II and III
D) I, II and III