Table 7-4
-Refer to Table 7-4.For steak and cheese and grilled chicken sandwiches,the table contains the values of the marginal utility (MU) and marginal utility per dollar (MU/P) for Mabel Jarvis.Mabel has $14 to spend on steak and cheese and grilled chicken sandwiches.Which of the following statements is true?
A) If Mabel maximizes her utility she will buy three steak and cheese sandwiches and two grilled chicken sandwiches.
B) If Mabel was maximizing her utility when spending $14 and then received an additional $4, she would receive the most marginal utility per dollar if her next purchase was another grilled chicken sandwich.
C) Mabel will first buy two steak and cheese sandwiches; then with her remaining $6 she will buy three grilled chicken sandwiches.
D) To maximize her utility, Mabel will need a total of $36, the income needed to buy 6 steak and cheese sandwiches and 6 grilled chicken sandwiches.
Correct Answer:
Verified
Q64: Table 10-5 Q68: There are two conditions necessary for a Q75: The marginal utility per dollar that Harold Q76: Table 7-5 Q90: Suppose Renee can increase her total utility Q93: If Lisa spends her income on veggie Q97: The economic model of consumer behavior explains Q98: Suppose Barry is maximizing his utility from Q101: In explaining consumer behavior economists explain how Q107: To maximize utility consumers should buy goods
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents