Suppose that Ms. Jones is currently exhausting her money income by purchasing 4 units of A for $2 a unit and 10 units of B at for $6 a unit. The marginal utility of the last unit of A is 10 utils and of B is 30 utils. These data suggest that Ms. Jones: should keep her purchases as they are. has preferences that are at odds with the principle of diminishing marginal utility. considers A and B to be substitute goods. should buy less A and more B. should buy less B and more A.
Suppose that Ms. Jones is currently exhausting her money income by purchasing 4 units of A for $2 a unit and 10 units of B at for $6 a unit. The marginal utility of the last unit of A is 10 utils and of B is 30 utils. These data suggest that Ms. Jones: should keep her purchases as they are. has preferences that are at odds with the principle of diminishing marginal utility. considers A and B to be substitute goods. should buy less A and more B. should buy less B and more A.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Suppose that Ms. Jones is currently exhausting her money income by purchasing 4 units of A for
$2 a unit and 10 units of B at for $6 a unit. The marginal utility of the last unit of A is 10 utils and of
B is 30 utils. These data suggest that Ms. Jones:
should keep her purchases as they are.
has preferences that are at odds with the principle of diminishing marginal utility.
considers A and B to be substitute goods.
should buy less A and more B.
should buy less B and more A.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5d5f5b1f-7da4-42ba-ae13-7836bdf9ec62%2F27d0fd73-7a42-4a33-8097-a460d38eac6c%2F5u6azrk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that Ms. Jones is currently exhausting her money income by purchasing 4 units of A for
$2 a unit and 10 units of B at for $6 a unit. The marginal utility of the last unit of A is 10 utils and of
B is 30 utils. These data suggest that Ms. Jones:
should keep her purchases as they are.
has preferences that are at odds with the principle of diminishing marginal utility.
considers A and B to be substitute goods.
should buy less A and more B.
should buy less B and more A.
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