Chapter5 Quiz Part2ANSWERS - Questions for Economics 1 1 a Briefly explain to someone who has never taken an economics class what the following

Chapter5 Quiz Part2ANSWERS - Questions for Economics 1 1 a...

This preview shows page 1 - 2 out of 4 pages.

Questions for Economics 1 1.a.Brieflyexplain to someone who has never taken an economics class what the following condition means. . b.Give a brief intuitiveexplanation of how and whyan individual should change his or her optimal consumption of good 1 and good 2 if . 2.Suppose that Fiona’s marginal utility from drinking milk is 5 utils per ounce and her marginal utility from eating cereal is 10 utils per ounce. If the price of milk is 50 cents per ounce and the price of cereal is 80 cents per ounce, is Fiona maximizing her utility? If so, explain how you know. If not, explain how she should change her spending to increase her utility.
Image of page 1
Image of page 2

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture