Use the Information Below to Answer the Following Questions

question 20

Multiple Choice

Use the information below to answer the following questions.
Fact 9.3.1
Marc has an income of $20 and spends it on two goods, root beer (measured on the vertical axis) and chips (measured on the horizontal axis) .The price of root beer is $1 a can.The price of chips is $0.50 a bag.Initially, Marc chooses to consume 10 cans of root beer and 20 bags of chips.Then the price of root beer rises to $1.50 per can and the price of chips falls to $0.25 a bag.
-Refer to Fact 9.3.1.When the price of a bag of chips falls,Marc

• A)will consume more beer, more chips, and be better off.
• B)will consume less beer, more chips, and be better off.
• C)will consume less beer, more chips, and be worse off.
• D)will consume less beer, less chips, and be worse off.
• E)consume more beer, less chips, and be better off.

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Definitions:

Cognitive Development

The mental process of growth and change in intellectual functioning, including learning, memory, problem-solving, and decision-making, throughout the lifespan.

Recent Research

This term refers to studies or scientific investigations that have been conducted in the near past and add to the current knowledge base.

Temperament

An individual’s behavioral style and characteristic way of responding.

Behavioral Style

an individual's characteristic way of behaving, reacting, or responding to various environmental stimuli.