Learning Path
Question & Answer
Choose the Best Answer
Price
Satisfaction
Budget
Utility per Dollar
Understanding the Answer
Let's break down why this is correct
For oranges, the key idea is how much satisfaction you get for every dollar spent. Other options are incorrect because Thinking about the money you pay for each orange is not enough; Contentment alone ignores how much money it costs.
Key Concepts
Marginal Utility Per Dollar
medium level question
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Deep Dive: Marginal Utility Per Dollar
Master the fundamentals
Definition
Marginal Utility Per Dollar is a concept in Economics that helps consumers maximize utility by considering the additional satisfaction gained from spending one more dollar on each good. In this scenario, the consumer chooses the combination of apples and oranges that provides the highest marginal utility per dollar spent within the budget constraint of $7, demonstrating rational consumer decision-making.
Topic Definition
Marginal Utility Per Dollar is a concept in Economics that helps consumers maximize utility by considering the additional satisfaction gained from spending one more dollar on each good. In this scenario, the consumer chooses the combination of apples and oranges that provides the highest marginal utility per dollar spent within the budget constraint of $7, demonstrating rational consumer decision-making.
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