Scenario 3.1: Andy Derives Utility from Two Goods, Potato Chips (Qp) and (Qp)

question 98

Multiple Choice

Scenario 3.1:
Andy derives utility from two goods, potato chips (Qp) and Cola (Qc) . Andy receives zero utility unless he consumes some of at least one good. The marginal utility that he receives from the two goods is given as follows:

-Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, and Andy has an income of $14.50, how many units of potato chips will he consume?

• A) 5
• B) 6
• C) 7
• D) 8
• E) none of the above

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Definitions:

Open Arms

A gesture or attitude of welcoming, accepting, or embracing others warmly and without judgment.

Relaxed

A state of being free from tension and anxiety.

Postural Cues

Nonverbal indicators involving body position and posture that communicate attitudes, feelings, and intentions.

Forward Lean

A body posture or movement indicating interest, engagement, or attentiveness, often used in the context of communication or presentation.