Tommy Buys Only Soda and Pizza and Is Buying the Amounts

question 161

Multiple Choice

Tommy buys only soda and pizza and is buying the amounts that maximize his utility. The marginal utility from a soda is 5 and the price of a soda is $1. The marginal utility from a slice of pizza is 10. The price of a slice of pizza must be

• A) $10.
• B) $2.
• C) $1.
• D) some amount that cannot be calculated without more information.

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Definitions:

Implementation Intentions

A self-regulatory strategy in the form of an "if-then plan" that can lead to better goal attainment, as well as help in habit and behavior modification.

Flow

A mental state of operation in which a person performing an activity is fully immersed, experiencing a feeling of energized focus, full involvement, and enjoyment in the process.

Strengths-Based Leadership

A leadership strategy focusing on the identification and maximization of an individual’s strengths, rather than focusing on weaknesses.

External Rewards

Incentives provided from an outside source, such as money or praise, to motivate behavior or acknowledge achievement.