(Table) Based on the Table, How Much Pizza and Soda

question 323

Multiple Choice

(Table) Based on the table, how much pizza and soda will Ryan consume with a $10 budget if the price of a hot dog is $2 and the price of a soda is $2?
$\begin{array}{|c|c|c|c|c|c|}\hline \begin{array}{c}\text { Quantity } \\\text { of Soda }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Utility }\end{array} & \begin{array}{c}\boldsymbol{M U} \\\text { (soda) /S }\end{array} & \begin{array}{c}\text { Quantity } \\\text { of Hot Dogs }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Utility }\end{array} & \begin{array}{c}\text { MU } \\\text { (hot dogs) /S }\end{array} \\\hline 1 & 32 & 16 & 1 & 28 & 14 \\\hline 2 & 24 & 12 & 2 & 24 & 12 \\\hline 3 & 20 & 10 & 3 & 22 & 11 \\\hline 4 & 16 & 8 & 4 & 16 & 8 \\\hline 5 & 5 & 2.5 & 5 & 6 & 3 \\\hline\end{array}$

• A) one hot dog and four sodas
• B) four hot dogs and one soda
• C) two hot dogs and three sodas
• D) three hot dogs and two sodas

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Definitions:

Net Income

The overall earnings of a business following the deduction of all costs, taxes, and expenses from its gross revenue.

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and earnings without having to increase leverage or equity financing.

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that are financed by shareholders' equity.

Fixed Assets Investment

Expenditures related to acquiring or improving long-term assets such as property, plant, and equipment that will be used in business operations.