Sonya's budget for magazines and chocolate bars is $50. Her marginal utility from these goods is shown in the table above. The price of a magazine is $5 and the price of a chocolate bar is $2.50
Sonya currently buys 4 magazines and 12 chocolate bars. To maximize her utility, she should A) buy more chocolate bars and fewer magazines.
B) buy more magazines and fewer chocolate bars.
C) buy more of both goods.
D) stay with the current combination of goods.
A
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A financial asset is
a. a unit of physical capital with a positive market value b. any asset that generates a stream of income c. a share in the ownership of a productive enterprise d. a form of money e. a promise to pay future income in some form
When demand is elastic
A. the percentage change in quantity demanded is greater than the percentage change in price. B. a price increase lowers total revenue. C. buyers are sensitive to price changes. D. All of the statements are true.