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2 September, 09:11

If Paul decides to buy a $60 ticket to a Cirque du Soleil show rather than a $45 ticket for a Blue Man Group performance, we can conclude that Paul is not making a rational choice. the marginal utility per dollar spent on Cirque du Soleil is higher than the marginal utility per dollar spent on Blue Man Group. the marginal utility per dollar spent on Cirque du Soleil is lower than the marginal utility per dollar spent on Blue Man Group. Paul's demand for a ticket to see Cirque du Soleil is more elastic than his demand for a ticket to see Blue Man Group.

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  1. 2 September, 11:42
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    the marginal utility per dollar spent on Cirque du Soleil is higher than the marginal utility per dollar spent on Blue Man Group.

    Explanation:

    The marginal utility of consuming a good consists in adding to the satisfaction that the good brings to the consumer for each unit consumed. If a consumer has the option of choosing between two goods and chooses the one with the highest price, it means that the good produces a greater degree of satisfaction (utility). Therefore, Cirque du Soleil's marginal utility is greater for this consumer than Blue Man Group.
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Home » Business » If Paul decides to buy a $60 ticket to a Cirque du Soleil show rather than a $45 ticket for a Blue Man Group performance, we can conclude that Paul is not making a rational choice.
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