Patty Spends $10 a Week on Bagels and Soda

question 333

Multiple Choice

Patty spends $10 a week on bagels and soda. The price of a bagel is $2 and the price of soda is $1 a can. Patty buys 2 bagels and 6 cans of soda. Her marginal utility from bagels is 20 units. The price of a bagel rises to $3 and the price of a can of soda rises to $1.50. Patty now buys ________ bagels and her marginal utility from bagels ________. She buys ________ cans of soda and her marginal utility from soda ________.

• A) fewer than 2; increases; fewer than 6; increases
• B) 2; is 20 units; 6; is 10 units
• C) fewer than 2; is 20 units; fewer than 6; is 10 units
• D) fewer than 2; decreases; fewer than 6; decreases

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