Martha and Sarah Have the Same Preferences,face the Same Prices,and

question 10

Multiple Choice

Martha and Sarah have the same preferences,face the same prices,and have the same income.Sarah's utility is measured in units while Martha's is measured in units squared.Select the best response.

• A)Martha and Sarah will choose to consume the same set of goods.
• B)Martha's and Sarah's marginal utility per dollar will be equal.
• C)Martha's and Sarah's marginal utilities will be equal.
• D)Martha and Sarah will have equal total utility.
• E)Martha and Sarah will not choose to consume the same set of goods.

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Definitions:

Long-term Improvements

Enhancements or upgrades to property or assets that are expected to provide benefits over a period exceeding one year.

Principal's Beneficiary

An individual or entity that stands to benefit from the actions or decisions of a principal, especially in legal or financial contexts.

Durable Power

A legal document that grants someone authority to act on another's behalf in legal matters, which continues to be effective even if the grantor becomes incapacitated.

Incapacitated

A state where an individual is unable to make decisions for themselves due to physical or mental limitations.