Lulu consumes only candy and cookies; she is currently buying more cookies than candy with her limited income. The last bag of candy gave Lulu the same additional utility as the last bag of cookies, and the prices of candy and cookies are the same. Lulu

Question

Answer

is maximizing utility given a limited income because the prices of candy and cookies are the same.

Answer

is maximizing satisfaction given a limited income because the marginal utility per dollar is the same for candy and cookies.

Answer

could get more satisfaction from the same income by buying more candy and less cookies.

Answer

could get more satisfaction from the same income by buying more cookies and less candy.

Answer

none of the above

Crowdly

Lulu consumes only candy and cookies; she is currently buying more cookies than ...

Want instant access to all verified answers on moodle.uleth.ca?