Exhibit 6-7 Marginal utility for sandwiches and sodas $$\begin{array} { | c | c | c | }
\hline \text { Quantity } & \text { Sandwiches } & \text { Sodas } \
\hline 1 & 10 & 5 \
2 & 8 & 4 \
3 & 6 & 3 \
4 & 3 & 1 \
5 & - 1 & 0 \
\hline
\end{array}$$
-Refer to Exhibit 6-7. If the price of a sandwich is $1 and the price of a soda is $1, Marian should spend her first dollar on a ____ and her second dollar on a ____.

Question

Exhibit 6-7 Marginal utility for sandwiches and sodas $$\begin{array} { | c | c | c | } 
\hline \text { Quantity } & \text { Sandwiches } & \text { Sodas } \
\hline 1 & 10 & 5 \
2 & 8 & 4 \
3 & 6 & 3 \
4 & 3 & 1 \
5 & - 1 & 0 \
\hline
\end{array}$$
-Refer to Exhibit 6-7. If the price of a sandwich is $1 and the price of a soda is $1, Marian should spend her first dollar on a ____ and her second dollar on a ____.

Quizplus · Accepted Answer

Marian should spend her first dollar on a sandwich because it provides the highest marginal utility of 10. The second dollar should also be spent on a sandwich as it still provides a higher marginal utility (8) compared to a soda (5).

Exhibit 6-7 Marginal Utility for Sandwiches and Sodas -Refer to Exhibit 6-7