Multiple Choice
A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table. If the child buys either chocolates or hard candies one piece at a time, what will be his first two purchases?
A) a hard candy, followed by another hard candy
B) a hard candy, followed by a chocolate
C) a chocolate, followed by a hard candy
D) a chocolate, followed by another chocolate
Correct Answer:

Verified
Correct Answer:
Verified
Q348: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8602/.jpg" alt=" In the diagram,
Q349: Where total utility is at a maximum,
Q350: Edith is buying products X and Y
Q351: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8602/.jpg" alt=" Given the indifference
Q352: In moving along a given budget line,<br>A)the
Q353: Any combination of goods lying outside of
Q354: Prashanth decides to buy a $75 ticket
Q355: Assume a diagram in which a budget
Q356: A rational consumer will cease purchasing a
Q357: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8602/.jpg" alt=" AA is Al's