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Fran Runs a Doughnut Shop in a Tiny 3-Person Town

Question 21

Multiple Choice

Fran runs a doughnut shop in a tiny 3-person town.Fran's rational consumers have the following demand schedules:  Price  Art  Betty  Cal 10 cents 104625 cents 92535 cents 71550 cents 504\begin{array} { | l | l | l | l | } \hline \text { Price } & \text { Art } & \text { Betty } & \text { Cal } \\\hline 10 \text { cents } & 10 & 4 & 6 \\\hline 25 \text { cents } & 9 & 2 & 5 \\\hline 35 \text { cents } & 7 & 1 & 5 \\\hline 50 \text { cents } & 5 & 0 & 4 \\\hline\end{array}
From the data you can assume that Betty


A) thinks that doughnuts are an inferior good.
B) would get more marginal utility from her first doughnut than anything else that she buys for 50 cents.
C) would get less marginal utility from her first doughnut than anything else that she buys for 50 cents.
D) is not a rational consumer.

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