Table 10-2 Table 10-2 Above Shows Keira's Utility from Soup and Sandwiches

question 213

Multiple Choice

Table 10-2

Table 10-2 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 10-2.Holding prices constant, when Keira's income changed from $18 to $23, her utility maximizing bundle changed.Based on your answers to her optimal choices at the two income levels, what type of goods are soup and sandwiches?

• A)Soup is an inferior good and sandwiches are a normal good.
• B)Soup is a normal good and sandwiches are an inferior good.
• C)Both soup and sandwiches are normal goods.
• D)Both soup and sandwiches are inferior goods.

Understand the concept of excise taxes and their impact on market prices.

Analyze how the imposition of taxes affects producer and consumer behavior.

Determine the incidence of taxation and how it is divided between consumers and producers.

Identify the shift in supply and demand curves due to taxation.

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Definitions:

Type A Personality

A personality type characterized by high levels of competitiveness, self-imposed stress, and a constant sense of urgency.

Emotion-Focused Coping

A method of dealing with stress by managing emotions rather than confronting the problem directly.

Problem-Focused Coping

Attempting to alleviate stress directly—by changing the stressor or the way we interact with that stressor.

Emotion-Focused Coping

A strategy for managing stress by working to change one’s emotional response to a stressor rather than changing the stressor itself.