Consider a Consumer Who Spends All Income on Only Two

question 75

Multiple Choice

Consider a consumer who spends all income on only two goods: pizza and soda. An extra slice of pizza would give the consumer 60 extra utils, while an extra can of soda would give the consumer 20 extra utils. Pizza costs $3 per slice, and soda costs $1 per can. In this situation, the consumer:

• A) is buying too much pizza and not enough soda.
• B) should purchase more pizza and less soda.
• C) has maximized his or her total utility.
• D) needs to equate the marginal utilities for pizza and soda.

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Definitions:

Reconciliation Ecology

The science of inventing, establishing, and maintaining new habitats to conserve species diversity in places where people live, work, or play.

Bluebirds

Small North American songbirds known for their distinctive blue (or blue and red) plumage, belonging to the genus Sialia.

Wetlands

Areas of land where saturation with water is the dominant factor determining the nature of soil development and the types of plant and animal communities living in the soil and on its surface.

Gene Banks

Facilities that preserve genetic material of plants or animals in order to protect biodiversity and support future breeding efforts.