Table 21-3
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Ethan Consumes Two Goods, Milk and Pretzels

question 167

Multiple Choice

Table 21-3
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Ethan consumes two goods, milk and pretzels. Milk costs $2 per glass, and he consumes it to the point where the marginal utility he receives from his last glass of milk is 6. Pretzels cost $4 per bag. The relationship between the marginal utility Ethan gets from eating a bag of pretzels and the number of bags he eats per month is as follows:
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$$\begin{array} { | c | c | } \hline \text { Bags of Pretzels } & \text { Marginal Utility } \\\hline 1 & 30 \\\hline 2 & 20 \\\hline 3 & 12 \\\hline 4 & 6 \\\hline 5 & 2 \\\hline 6 & 0 \\\hline\end{array}$$ ​
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-Samantha is maximizing total utility while consuming food and clothing. Her marginal utility from food is 50, and her marginal utility from clothing is 25. If clothing is priced at $10 per unit, the price of food per unit must be

• A)$2.
• B)$2.50.
• C)$5.
• D)$20.

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Definitions:

Hydronephrosis

the swelling of a kidney due to a build-up of urine caused by an obstruction in the urinary tract.

Lithotripsy

A medical procedure that uses shock waves or a laser to break down stones in the kidney, bladder, or ureter to allow them to be passed in the urine.

-Tripsy

A suffix used in medical terminology to denote the crushing of a stone or calculus.

Calculus

A branch of mathematics dealing with the study of change, in the same way that geometry is the study of shape and algebra is the study of operations and their application to solving equations.