John's marginal rate of substitution between daffodils and roses is always the sameregardless of how much of either flower he purchases. Suppose that price ration ofdaffodils and roses is greater than John's marginal rate of substitution between thedaffodils and roses. That isPDaffodilPRose> |.John maximizes his utility by consumingMU DaffodilMU RosesWe need more information to determine what he will consumeOnly daffodils and no rosesA mix of roses and daffodilsOnly roses and no daffodils Suppose that the marginal utilities from consuming good X and good Y are MU, -15and MUy = 20. The price of good X and good Y are Px = $2 and $3 respectively.Which of the following statements is true?The consumer receives more marginal utility per dollar from good Y than fromgood XThe consumer could increase utility by giving up 1 unit of good X for 2/3 units ofgood YThe consumer could increase utility by giving up 1 unit of good Y for 3/2 units ofgood XJyThe consumer is maximizing utility

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John's marginal rate of substitution between daffodils and roses is always the same regardless of how much of either flower he purchases. Suppose that price ration of daffodils and roses is greater than John's marginal rate of substitution between the daffodils and roses. That is PDaffodil PRose > | . John maximizes his utility by consuming MU Daffodil MU Roses We need more information to determine what he will consume Only daffodils and no roses A mix of roses and daffodils Only roses and no daffodils

John's marginal rate of substitution between daffodils and roses is always the same regardless of how much of either flower he purchases. Suppose that price ration of daffodils and roses is greater than John's marginal rate of substitution between the daffodils and roses. That is PDaffodil PRose > | . John maximizes his utility by consuming MU Daffodil MU Roses We need more information to determine what he will consume Only daffodils and no roses A mix of roses and daffodils Only roses and no daffodils

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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