Joshua Consumes Pizza and Cola So That the Marginal Utility

question 70

True/False

Joshua consumes pizza and cola so that the marginal utility per dollarspent for the last piece of pizza consumed per week is 3 while themarginal utility per dollar spent for the last cola consumed is 1.5.Joshuashould spend more of his income on pizza and less on cola in order tomaximize utility.

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Definitions:

Systematic Desensitization

A therapeutic technique used to reduce anxiety by gradually exposing the patient to the feared object or situation.

Aversive Conditioning

A method of behavioral training in which an unwanted behavior is associated with discomfort in order to discourage that behavior.

Transference

The process in psychotherapy where patients project feelings and attitudes from a past relationship onto the therapist.

Counterconditioning

A behavior therapy technique involving the conditioning of an undesirable behavior or response to a stimulus into a desired behavior by association of positive actions with the stimulus.