For the Questions , Assume James Purchases Only Two

question 6

Multiple Choice

For the questions , assume James purchases only two goods, steak and chicken, with his weekly income of $60. The price of steak is $10 and the price of chicken is $5. The following table shows the marginal utility James obtains from each additional pound of steak and chicken:

$$\begin{array} { l ccc} \text { Quantity } & \begin{array} { l } \text { Marginal utility of } \\\text { steak }\end{array} & \begin{array} { c } \text { Marginal utility of } \\\text { chicken }\end{array} & \\\hline 1 & 70 & 50 \\2 & 60 & 40 & \\ 3 & 50 & 30 & \\4 & 40 & 20 & \\5 & 32 & 10 &\end{array}$$
-If the price of steak falls to $8, what quantities of steak and chicken should James purchase to maximize his utility?

• A) 6 steak, 2 chicken
• B) 5 steak, 3 chicken
• C) 4 steak, 4 chicken
• D) 5 steak, 4 chicken
• E) 3 steak, 6 chicken

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Definitions:

Digestion

The biological process by which food is broken down into smaller components, making nutrients available for absorption into the body.

Absorption

The process by which substances are taken up into or across tissues, such as the absorption of nutrients by the intestines.

Amylase

An enzyme produced primarily by the pancreas and salivary glands that helps in the digestion of carbohydrates by breaking down starch into sugar.

Anorexia

An eating disorder characterized by an obsessive fear of gaining weight and a refusal to maintain a healthy body weight.