Respuesta :
Online, the relevant values are that she gets a marginal utility of 24 when she buys the first sundae and she gets a marginal utility of 16 when she buys, THe milkshake. It seems that the sundae is the better choice, but we also have to factor in price. Per dollar, she gets 24/6=4 marginal utility from buying her first sundae. Regarding milkshakes that cost 4 dollars, she gets 16/4=4 marginal utility per dollar. Hence, both sweets give her the same utility per dollar and thus she is indifferent between them.
As she is indifferent between ice cream sundaes and milkshakes, thus, the item she will purchase first will be on her instinct.
What is the desired item about?
Because she has enough money in her budget to purchase either item, the item she will purchase first will be unknown.
In this scenario, she is indifferent between ice cream sundaes and milkshakes, thus, the item she will purchase first will be on her instinct rather than strategic,
Missing word "Ice Cream Sundaes $6 Milkshakes $4. Assuming she has enough money in her budget to purchase either item, which item should she purchase first?"
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