Gigi Consumes Only Perrier and Cheese

question 76

Multiple Choice

Gigi consumes only Perrier and cheese. In order to maximize her happiness subject to a limited income, Gigi should purchase the amounts of Perrier and cheese at which

• A) the addition to happiness of the last bottle of Perrier is the same as the addition to happiness of the last pound of cheese.
• B) the addition to happiness per dollar spent on Perrier is the same as the addition to happiness per dollar spent on cheese.
• C) she spends all her income.
• D) both b and c
• E) both a and c

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Definitions:

Explaining Events

The process of providing reasons or causes for occurrences, often to understand and interpret the world around us.

Describing

The act of providing a detailed account or explanation of the characteristics, features, or aspects of something.

Analytic Introspection

A psychological method where participants report detailed descriptions of their inner thoughts and feelings, used in early cognitive studies.

Observable Behavior

Observable and quantifiable behaviors or responses from a person.