Suppose That Ms

question 250

Multiple Choice

Suppose that Ms. Thomson is currently exhausting her money income by purchasing 10 units of A and 8 units of B at prices of $3 and $4, respectively. The marginal utility of the last units of A and B are 15 and 24, respectively. These data suggest that Ms. Thomson

• A)has preferences that are at odds with the principle of diminishing marginal utility.
• B)considers A and B to be complementary goods.
• C)should buy more A and less B.
• D)should buy more B and less A.

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Definitions:

Motivational

Relating to the reasons one has for acting or behaving in a particular way, often aimed at inspiring or encouraging people.

Workplace Giving

Programs that allow employees to donate to charitable causes through payroll deductions or company-sponsored charity events.

Brand Loyalty

The tendency of consumers to continuously purchase products from the same brand rather than switching to competitors.

Brand Awareness

The extent to which consumers are familiar with the qualities or image of a particular brand of goods or services.