The table above shows Mary's utility from chips and soda. Mary buys only chips and soda. Chips cost $2 per bag and soda costs $4 per six-pack. She has $20 to spend per week. To maximize her utility, Mary will buy
A) 5 sodas and 5 bags of chips.
B) 3 sodas and 3 bags of chips.
C) 8 sodas and 8 bags of chips.
D) 6 sodas and 2 bags of chips.
D
Economics
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What do consumers sometimes do that makes expansionary fiscal policy less effective?
A. Spend all of the money they get from a tax cut B. Save all the money they get from a tax cut C. Increase investment spending in response to rising interest rates D. Reduce investment spending in response to rising interest rates
Economics
If a decrease in income leads to a decrease in the demand for mac and cheese, then mac and cheese is
A) a complement. B) a necessity. C) a normal good. D) a neutral good.
Economics