Refer to the information provided in Table 6.1 below to answer the question(s) that follow.
Table 6.1Number of Hamburgers per DayTotal UtilityMarginal Utility130?252?367?476?5?4Number ofSodas per DayTotal UtilityMarginal Utility120?235?347?457?5?7Refer to Table 6.1. If the price of a soda is $2, the price of a hamburger is $6, and George has $14 of income, George's utility-maximizing combination of sodas and hamburgers per day is
A. 4 sodas and 1 hamburger.
B. 3 sodas and 1.5 hamburgers.
C. 1 soda and 2 hamburgers.
D. indeterminate from this information.
Answer: A
You might also like to view...
Economists favor the use of peak-load pricing since it can
A. improve the equity of the distribution of income. B. enhance the efficiency in the use of scarce resources. C. improve the profit levels of corporations. D. result in lower levels of pollution.
If Pete raises his price of muffins from $2 to $3 and his sales revenue increases from $35,000 to $38,000 . then:
a. the demand for Pete's muffins in this range is price elastic. b. the demand for Pete's muffins in this range is price inelastic. c. the demand for Pete's muffins in this range is unit elastic. d. the percentage change in quantity demanded must exceed the percentage change in product price. e. this is impossible since this would violate the law of demand.
Consuming one more of a good increases its marginal-utility-to-price ratio, and consuming one less of the other good lowers its marginal-utility-to-price ratio
a. True b. False Indicate whether the statement is true or false
Which of the following is NOT a component of private investment, for purposes of GDP accounting?
A. newly produced housing B. additions to firms' stock of inventories C. purchases by firms of used machinery D. newly built factories