Ben consumes soda and cheeseburgers. If his total utility from sodas is currently 40, and his total utility from cheeseburgers is 30, and the price of cheeseburgers is twice the price of sodas,
a. Ben is in equilibrium
b. Ben should increase his soda consumption and decrease his cheeseburger consumption.
c. Ben should decrease his soda consumption and increase his cheeseburger consumption.
d. we cannot conclude that any of the above are correct.
d
You might also like to view...
Which of the following statements is true?
A) A monopolist faces an upward sloping demand curve. B) A perfectly competitive firm faces an upward sloping demand curve. C) A monopolist can increase the price of its product and not lose all of its business. D) A perfectly competitive firm can increase the price of its product without losing its business.
Tariffs can never raise a country's standard of living. True or false? Explain carefully
What will be an ideal response?
The expenditure approach to GDP accounting includes spending on
a. consumption, investment, durable goods, and exports b. consumption, gross private domestic investment, government spending for goods and services, and exports c. consumption, gross private domestic investment, government spending for goods and services, and net exports d. consumption, net private domestic investment, government spending for goods and services, and net exports e. consumption, gross private domestic investment, all government spending including transfer payments, and net exports
Economic cost is:
A. Equal to explicit costs minus implicit costs. B. The same as dollar costs. C. Equal to the accounting cost minus implicit costs. D. The value of all resources used to produce a good or service.