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A Child Is Given $4 of Pocket Money to Be

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A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table. A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table.   If the child buys either chocolates or hard candies one piece at a time, what will be his first two purchases? A) a hard candy, followed by another hard candy B) a hard candy, followed by a chocolate C) a chocolate, followed by a hard candy D) a chocolate, followed by another chocolate If the child buys either chocolates or hard candies one piece at a time, what will be his first two purchases?


Definitions:

Aggregations

Collections or clusters of items, individuals, or particles that come together but are not strictly bound to each other.

Society

A group of individuals belonging to the same species and often closely related; an organized society is an actively cooperating group.

Behavioral Responses

Actions or reactions of an organism in response to external or internal stimuli.

Lek

A small territory in which males compete for females.

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