Multiple Choice
You are consuming hot dogs and Cokes and believe you are maximizing utility for your entire budget of $12.The price of a hot dog is $2 and the price of a Coke is $2.Suppose the price of hot dogs rises to $4 and the price of a Coke remains at $2.You adjust your consumption of hot dogs and Cokes and believe you are once again receiving maximum total utility from the meal.Which one of the following can you conclude?
A) The total utility from hot dogs is maximized.
B) The marginal utilities from hot dogs and Cokes must be equal.
C) The marginal utility from hot dogs must rise compared to the marginal utility from Cokes.
D) You are purchasing 2 hot dogs and 2 Cokes.
E) You are purchasing 1 hot dog and 4 Cokes.
Correct Answer:
Verified
Correct Answer:
Verified
Q26: As more of a good is consumed,its<br>A)marginal
Q27: If the marginal utilities from two goods
Q28: Suppose a consumer spends all his income.His
Q29: Bounded self-interest<br>A)is limited by the computing power
Q30: In consumer equilibrium,<br>A)total utility is maximized given
Q32: If Katie purchases two slices of pizza
Q33: Geneva is not at her consumer equilibrium
Q34: To determine consumer equilibrium we need to
Q35: The paradox of value<br>A)is that values are
Q36: If the price of a good increases,everything