Suppose joe is maximizing total utility within his budget constraint. if the price of the last pair of jeans purchased is $25 and it yields 100 units of extra satisfaction and the price of the last shirt purchased is $20, then, using the rule of equal marginal utility per dollar spent. how much the extra satisfaction must joe received from the last shirt?

the correct answer is 80 units of utility

Explanation:

Using the rule of equal marginal utility (using a simple rule of three)

$25    100 units of utility

$20      X                              X= (20*100)/25

                                             X= 2000/25

                                              X= 80 units of utility

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