Two Statements Are Given

question 109

Multiple Choice

Two statements are given. Identify the statement for which a ratio of the measurements is meaningful. State "Neither" or "Both" if appropriate.
-1 - School lunches cost $1.10 at district grade schools, and they cost $1.75 at district high schools.
2 - Sue Ellen is on an 1100 calorie a day diet, and Samuel is on an 1800 calorie a day diet.

• A)School lunches cost $1.10 at district grade schools, and they cost $1.75 at district high schools.
• B)Sue Ellen is on an 1100 calorie a day diet, and Samuel is on an 1800 calorie a day diet.
• C)Neither
• D)Both

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Definitions:

Utility Maximization

The process by which individuals select the combination of goods and services that maximizes their level of satisfaction, given their budget constraint.

Diminishing Utility

is an economic principle stating that as a person consumes more of a good, the marginal utility of each additional unit decreases.

Aggregate Demand Curve

A curve that shows the relationship between the overall price level in the economy and the total demand for goods and services at that price level.

Demand Curves

Graphs showing the relationship between the price of a good and the quantity demanded by consumers.