Consider a Consumer Who Spends All Income on Only Two

question 75

Multiple Choice

Consider a consumer who spends all income on only two goods: pizza and soda. An extra slice of pizza would give the consumer 60 extra utils, while an extra can of soda would give the consumer 20 extra utils. Pizza costs $3 per slice, and soda costs $1 per can. In this situation, the consumer:

• A) is buying too much pizza and not enough soda.
• B) should purchase more pizza and less soda.
• C) has maximized his or her total utility.
• D) needs to equate the marginal utilities for pizza and soda.

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Definitions:

Social Identity

A concept referring to the part of an individual's self-perception and esteem that is derived from their membership in social groups, along with the value and emotional significance attached to that membership.

Primary Group

A small social group characterized by close, personal, and enduring relationships, such as family or close friends.

Collective

Pertaining to a group of individuals acting as a whole, especially when owning property, making decisions, or sharing duties and responsibilities.

Group-Level Goals

Objectives that are set and pursued by a group collectively, rather than by individuals, to achieve a common outcome or task.