Table 10-5 -Refer to Table 10-5, Which Lists the Values of Harry

question 290

Multiple Choice

Table 10-5

-Refer to Table 10-5, which lists the values of Harry Taber's marginal utility and marginal utility per dollar for Italian submarine (sub) sandwiches and tacos.Assume that the price of a sub sandwich is $4 and the price of a taco is $2.When Harry's income is $14, he buys two Italian sub sandwiches and three tacos.The last column lists the values of the marginal utility per dollar for tacos when the price of a taco decreases to $1.Complete this statement: As a result of the change in price, the marginal utility of each taco Harry consumes increases and

• A)the substitution effect of the price change will cause Harry to buy more tacos and fewer subs.
• B)the substitution effect of the price change will cause Harry to buy more tacos if they are a normal good, and fewer tacos if they are an inferior good.
• C)the substitution effect will cause Harry to buy another sub because his purchasing power has increased.
• D)the substitution effect will cause Harry to buy fewer tacos.

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Definitions:

Strategic Importance

The significance of an action or entity in achieving long-term goals and sustaining competitive advantage.

Support Activity

Operations within a company that aid the primary activities in contributing to the business's value chain, such as human resources and information technology.

Primary Activity

Primary activity is a principal operation or function directly involved in creating and delivering a product or service, such as production, marketing, and sales.

Strategic Priority Analysis

The process of identifying and evaluating the importance and urgency of different strategic initiatives or actions to achieve business objectives.