You Are Consuming Hot Dogs and Cokes and Believe You

question 31

Multiple Choice

You are consuming hot dogs and Cokes and believe you are maximizing utility for your entire budget of $12.The price of a hot dog is $2 and the price of a Coke is $2.Suppose the price of hot dogs rises to $4 and the price of a Coke remains at $2.You adjust your consumption of hot dogs and Cokes and believe you are once again receiving maximum total utility from the meal.Which one of the following can you conclude?

• A)The total utility from hot dogs is maximized.
• B)The marginal utilities from hot dogs and Cokes must be equal.
• C)The marginal utility from hot dogs must rise compared to the marginal utility from Cokes.
• D)You are purchasing 2 hot dogs and 2 Cokes.
• E)You are purchasing 1 hot dog and 4 Cokes.

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Definitions:

Vacancy Model

A conceptual model used to analyze and predict the impacts of job vacancies within an organization's structure and operations.

Top-Down

Describes an approach or management style where decisions and policies are initiated by the highest level of authority and then passed down through the ranks.

Markov Model

A stochastic model used to predict future states or outcomes based on current conditions and probabilistic transitions between states.

Projected Patterns

Forecasted trends or behaviors expected to occur based on analysis of historical data and current conditions.