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Sam Always Tries to Maximize His Utility in His Consumption

question 100

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Sam always tries to maximize his utility in his consumption of popcorn and soft drinks.Both of these goods are subject to diminishing marginal utility.Suppose the prices of these goods,along with Sam's budget (and spending) for these items,stay the same,but Sam decides to decrease his consumption of popcorn.Holding everything else constant,this means that Sam must _____ his consumption of soft drinks,and his marginal utility per dollar spent on popcorn will be _____ than it used to be.


Definitions:

Social

Relating to society or its organization; pertaining to activities in which individuals communicate or interact with others.

Utility Computing

A computing model where computing resources are provided as a metered service similar to utilities such as electricity.

On-demand

A service or product that is available for use or download at any time, immediately responding to consumer requirements.

SaaS

Software as a Service is a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over the internet.

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