Asked by
Zaniya Lampkins
on Oct 27, 2024
Verified
Suppose Sirach knows that the price of doughnuts is $3 and the price of cupcakes is $4.He also knows that the next doughnut he consumes will increase his total utility by 6 utils and the next cupcake will increase his total utility by 10 utils.Assuming he has enough money to buy either,Sirach should buy a doughnut next.
Total Utility
The total satisfaction or benefit received by consuming a certain quantity of goods or services.
Utils
A hypothetical unit of measure used to quantify the satisfaction or utility that a consumer derives from consuming a good or service.
- Recognize the significance of utility in guiding optimal consumption decisions constrained by budgetary conditions.
Verified Answer
PH
Learning Objectives
- Recognize the significance of utility in guiding optimal consumption decisions constrained by budgetary conditions.
Related questions
If the Price of Laundry Detergent Equals the Price of ...
At Frankie's Buy-The-Slice Pizza,Brian Eats Eight Slices of Pizza ...
Assume a Diagram in Which a Budget Line Is Imposed ...
A Consumer Is in Equilibrium and Is Spending Income in ...
Assume That a Consumer Purchases a Combination of Products Y ...