Kati-Lyn Has to Choose Between Eating Chinese Food and Indian

question 116

Multiple Choice

Kati-Lyn has to choose between eating Chinese food and Indian food.Both Chinese food and Indian food cost the same.Which of the following equations,where MU is marginal utility and U is total utility,will lead to the optimal level of consumption?

• A) MU_Chinese < MU_Indian
• B) MU_Chinese >MU_Indian
• C) MU_Chinese = MU_Indian
• D) U_Chinese = U_Indian
• E) U_Chinese >U_Indian

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Definitions:

Shortage

A situation in which the demand for a product or service exceeds the supply available at a particular price.

Non-price Factors

Variables other than price that affect the demand and supply of goods and services, such as consumer preferences, income, and technology.

Price Ceiling

A legal maximum price that can be charged for a good or service, intended to protect consumers from high prices.

Quantity Supplied

Quantity supplied refers to the total amount of a good or service that producers are willing and able to sell at a given price over a specific time period.