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Juanita Spends All of Her Income on Movie Tickets and Groceries

Question 17

Multiple Choice

Juanita spends all of her income on movie tickets and groceries. Suppose Juanita is presented with two options: A and B. Option A gives her a voucher of $X that she can only spend on groceries. Option B gives her $X that she can spend on either or both of the goods. Assuming Juanita prefers Option B to Option A, which of the following is correct?


A) Juanita spends her entire income on groceries.
B) Juanita spends less than $X on groceries.
C) Juanita spends more than $X on groceries, but still buys some movie tickets.
D) Juanita would never prefer Option B to Option A.

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