Refer to the information provided in Table 6.2 below to answer the question(s) that follow.
Table 6.2Number ofCandy Bars per DayTotal UtilityMarginal Utility140?275?3100?4115?5?5Number ofHot Dogs per DayTotal UtilityMarginal Utility130?254?372?484?5?6Refer to Table 6.2. If the price of a candy bar is $1, the price of a hot dog is $2, and Aaron has $6 of income, Aaron's utility-maximizing combination of candy bars and hot dogs per day is
A. 1 candy bar and 2 hot dogs.
B. 2 candy bars and 1.5 hot dogs.
C. 4 candy bars and 1 hot dog.
D. indeterminate from this information.
Answer: C
Economics
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A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.
Economics
Output and inflation movements can arise from either demand or supply shifts. How can we tell them apart?
What will be an ideal response?
Economics