If the price of Pizzas is $10 per pizza, and Rachel is currently examining purchasing 7 pizzas, she should: O Buy MORE Pizzas as Price is currently LOWER than Marginal Untility O Buy MORE Pizzas as Price is currently Higher than Marginal Utility Buy FEWER Pizzas as Price is Currently HIGHER than Marginal Utility Buy FEWER Pizzas as Price is currently LOWER than Marginal Utility

If the price of Pizzas is $10 per pizza, and Rachel is currently examining purchasing 7 pizzas, she should: O Buy MORE Pizzas as Price is currently LOWER than Marginal Untility O Buy MORE Pizzas as Price is currently Higher than Marginal Utility Buy FEWER Pizzas as Price is Currently HIGHER than Marginal Utility Buy FEWER Pizzas as Price is currently LOWER than Marginal Utility

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 8RQ: Is it possible for total utility to increase while marginal utility diminishes? Explain.

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Similar questions

Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a roundâ€”trip cost of 2 in gasoline money. He has a total of 10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremys consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.
Would you expect total utility to rise or fall with additional consumption of a good? Why?
Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to confirm the choice of phone minutes and round trips that maximize Jeremys utility.
If people do not have a complete mental picture of total utility for every level of consumption, how can they find their utility-maximizing consumption choice?
Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elasticity of the other good you buy?