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Question
Scenario 4.1:Daniel derives utility from only two goods, cake (Qc) and donuts (Qd). The marginal utility that Daniel receives from cake (MUc) and donuts (MUd) are given as follows:
MUc = Qd
MUd = Qc
Daniel has an income of $240 and the price of cake (Pc) and donuts (Pd) are both $3.See Scenario 4.1. Holding Daniel's income and Pd constant at $240 and $3 respectively, what is Daniel's demand curve for cake?
A) Qc = 240 - Pc
B) Qc = 240/Pc
C) Qc = 120/Pc
D) Qc = 240/(3 + Pc)
E) none of the above
Answer
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