The Table Below Shows the Quantities of Toffee Bars and Bags

question 33

Multiple Choice

The table below shows the quantities of toffee bars and bags of cashews that a consumer could consume over a 1- week period. $\begin{array}{|c|c|c|c|c|}&\text { Toffee (bars) }&&\text { Cashews (bags) }\\\hline \text { Units } & \begin{array}{c}\text { Marginal } \\\text { Utility }\end{array} & \begin{array}{c}\text { Total } \\\text { Utility }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Utility }\end{array} & \begin{array}{c}\text { Total } \\\text { Utility }\end{array} \\\hline 1 & 10 & 10 & 12 & 12 \\\hline 2 & 8 & 18 & 10 & 22 \\\hline 3 & 5 & 23 & 7 & 29 \\\hline 4 & 3 & 26 & 5 & 34 \\\hline 5 & 1 & 27 & 2 & 36 \\\hline 6 & 0 & 27 & 1 & 37 \\\hline 7 & 0 & 27 & 0 & 27 \\\hline\end{array}$ TABLE 6- 1
-Refer to Table 6- 1.If the prices of toffee bars and bags of cashews are both $1 and this consumer has $7 per week to spend on these two snacks,how many of each will he/she purchase to maximize utility?

• A)2 toffee bars and 5 bags of cashews
• B)3 toffee bars and 4 bags of cashews
• C)6 toffee bars and 1 bag of cashews
• D)5 toffee bars and 2 bags of cashews
• E)4 toffee bars and 3 bags of cashews

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Definitions:

Upsloping

Describes a line or curve on a graph that moves upward as it progresses from left to right, often used to depict positive relationships between variables.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to offer for sale, holding all else constant.

Highly Inelastic

Describes a situation where demand or supply shows little to no response to changes in price, often due to the lack of close substitutes.

Highly Elastic

Describes a market situation where demand or supply of a good or service is very sensitive to changes in price.