Patty spends $10 a week on bagels and soda. The price of a bagel is $2 and the price of soda is $1 a can. Patty buys 2 bagels and 6 cans of soda. Her marginal utility from bagels is 20 units
The price of a bagel rises to $3 and the price of a can of soda rises to $1.50. Patty now buys ________ bagels and her marginal utility from bagels ________. She buys ________ cans of soda and her marginal utility from soda ________. A) fewer than 2; increases; fewer than 6; increases
B) 2; is 20 units; 6; is 10 units
C) fewer than 2; is 20 units; fewer than 6; is 10 units
D) fewer than 2; decreases; fewer than 6; decreases
A
You might also like to view...
Jim recently graduated from college. His income increased tremendously from earning $500 . a year to $60,00 . a year. Jim decided that instead of renting he will buy a house. This implies that
a. Houses are normal goods for Jim b. Houses are inferior goods for Jim c. Renting and Owning are complementary for Jim d. Need information on the price of houses
If General Motors is earning only a normal profit,
a. it is making economic profit b. it is breaking even c. it is suffering an economic loss d. it is covering only explicit costs e. it is covering only implicit costs