Suppose the Price of a Soda Is $2 Each, the Price

question 29

Multiple Choice

Suppose the price of a soda is $2 each, the price of a hot dog is $3 each and the budget is $20. If the marginal utility of the fourth soda is 100 and the marginal utility of the fourth hot dog is 150, to maximize utility, a person will buy

• A) 4 sodas and 4 hot dogs.
• B) more hotdogs than 4 and fewer sodas than 4 because hot dogs provide more utility.
• C) more sodas than 4 to increase their utility.
• D) fewer sodas than 4 and more hot dogs than 4.

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Definitions:

Introduction

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Investigation

refers to a systematic and detailed examination or inquiry aimed at uncovering facts or information about a particular subject or event.

Benefits

Benefits refer to positive outcomes or advantages that individuals or organizations gain, often from products, services, or specific actions.

Background

Pertaining to information or the context that precedes and supports understanding a subject or situation.