Table 8.2 Table 8.2 Above Shows Keira's Utility from Soup and Sandwiches

question 107

Multiple Choice

Table 8.2

Table 8.2 above shows Keira's utility from soup and sandwiches. The price of soup is $2 per cup and the price of a sandwich is $3. Keira has $18 to spend on these two goods.
-Refer to Table 8.2.Holding prices constant, when Keira's income changed from $18 to $23, what happens to her total utility and to the marginal utilities of the last cup of soup and the last sandwich purchased?

• A)Her total utility increases but the marginal utilities of the last cup of soup and the last sandwich consumed decrease.
• B)Her total utility, the marginal utility of the last cup of soup consumed and the marginal utility of the last sandwich consumed, all increase.
• C)Her total utility decreases but the marginal utilities of the last cup of soup and the last sandwich consumed increase.
• D)Her total utility and the marginal utility of the last cup of soup consumed increase but marginal utility of the last sandwich consumed decreases.
• E)Her total utility and the marginal utility of the last sandwich consumed increase but marginal utility of the last cup of soup consumed decreases.

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Definitions:

Two-Parent Families

Family units consisting of two adults who are in a relationship and are the caregivers to one or more children.

Decreasing Percentage

A quantitative measure showing a reduction in the proportion of a part relative to the whole over a certain period.

Increasing Number

A term indicating a rising count or quantity of a particular group or phenomenon.

Cuban Refugees

Individuals who flee Cuba, often due to political persecution or economic hardship, seeking refuge in another country.