A person has $50/week for transport expenditures for their job. Uber ride = $10. Subway ride =$2.50. If Uber rides are on the x-axis, what is the slope of the budget constraint? If the marginal utility of a person’s last Uber ride was 30 and the marginal utility of a person’s last subway ride was 5, then how should the person adjust the consumption bundle to maximize utility? A -Increase the number of Uber rides and decrease the number of subway rides B -Decrease the number of Uber rides and increase the number of subway rides C -Remain the same – the consumption bundle is already utility- maximizing D -Change ambiguously – there is not enough information to answer
A person has $50/week for transport expenditures for their job. Uber ride = $10. Subway ride =$2.50. If Uber rides are on the x-axis, what is the slope of the budget constraint? If the marginal utility of a person’s last Uber ride was 30 and the marginal utility of a person’s last subway ride was 5, then how should the person adjust the consumption bundle to maximize utility? A -Increase the number of Uber rides and decrease the number of subway rides B -Decrease the number of Uber rides and increase the number of subway rides C -Remain the same – the consumption bundle is already utility- maximizing D -Change ambiguously – there is not enough information to answer
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A person has $50/week for transport expenditures for their job. Uber ride = $10. Subway ride =$2.50. If Uber rides are on the x-axis, what is the slope of the budget constraint?
If the
A -Increase the number of Uber rides and decrease the number of subway rides
B -Decrease the number of Uber rides and increase the number of subway rides
C -Remain the same – the consumption bundle is already utility- maximizing
D -Change ambiguously – there is not enough information to answer
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