Assume the Price of Cola Is $8 Per Unit and the Price

question 33

Multiple Choice

Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit. Table 19.3
Michael's Utility Schedule
$\begin{array} { | c | r | c | c | c | c | } \hline \begin{array} { c } \text { Units of } \\\text { Cola }\end{array} & \text { TU of Cola } & \begin{array} { c } \text { MU of } \\\text { Cola }\end{array} & \begin{array} { c } \text { Units of } \\\text { Pretzels }\end{array} & \begin{array} { c } \text { TU of } \\\text { Pretzels }\end{array} & \begin{array} { c } \text { MU of } \\\text { Pretzels }\end{array} \\\hline 1 & 46 & 40 & 1 & 30 & 30 \\\hline 2 & & 32 & 2 & & 20 \\\hline 3 & 96 & 24 & 3 & 66 & 16 \\\hline 4 & 112 & & 4 & 78 & \\\hline 5 & 124 & & 5 & 84 & \\\hline\end{array}$ Refer to Table 19.3.If Michael has $28 dollars to spend,why will three colas and four pretzels not be optimal?

• A)This combination has less total utility.
• B)This combination is affordable but does not maximize utility.
• C)This combination is not affordable.
• D)This combination has less marginal utility per dollar.

---

Definitions:

Attributional Ambiguity

A phenomenon whereby members of stigmatized groups often can be uncertain whether negative experiences are based on their own actions and abilities or are the result of prejudice.

Discrimination

Unequal treatment or prejudice against individuals on the basis of their membership in a particular group, negatively affecting their opportunities and well-being.

Cognitive Dissonance Theory

A theory suggesting that people experience discomfort (dissonance) when holding conflicting cognitions and are motivated to reduce this discomfort by altering attitudes, beliefs, or behaviors.

Outgroups

Groups to which a person does not belong or identify, often viewed as different or outside the social norm.