Item6
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Item 6
Time Remaining 40 minutes 47 seconds
00:40:47
Question and Exercise 19-10
Suppose a small cheese pizza costs $10 and a calzone costs $5. You have $40 to spend. The marginal utility (MU) that you derive from each is as follows:
NumberMU of PizzaMU of Calzone0āā1603024028330244202051010
How many of each would you buy?
pizza(s).
calzone(s).
Suppose the price of a calzone rises to $10. How many of each would you buy?
pizza(s).
calzone(s).
Use this to show how the principle of rational choice leads to the law of demand.
multiple choice
This demonstrates the law of demand because as the total utility falls for calzones, I buy a smaller quantity.
This demonstrates the law of demand because as the price of calzones rises, I buy a larger quantity.
This demonstrates the law of demand because as marginal utility per dollar changes for calzones, I change the quantity I demand.
This demonstrates the law of demand because as the price of calzones rises, I buy a smaller quantity.