Preston goes to the movies every Sunday afternoon. The movie theater offers 4 combinations of popcorn and beverages: the "mini-combo" costs $5 and includes a small popcorn and a small drink, the "medium-combo" costs $7 and includes a medium popcorn and a medium drink, the "value-combo" also costs $7 and includes a small popcorn and a large drink, and the "large-combo" costs $9 and includes a
large popcorn and a large drink. Preston always purchases the "value-combo.". We can conclude that
a. Preston cannot afford the "large-combo.".
b. Preston cannot afford the "medium-combo.".
c. Preston prefers a combo with a larger popcorn-to-beverage ratio.
d. Preston prefers a combo with a smaller popcorn-to-beverage ratio.
d
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Gil can consume either pens or milkshakes. Both pens and milkshakes sell for $1. Gil finds that when his income is spent, his marginal utility of pens will be 10 while his marginal utility of milkshakes will be 8
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