If Katie Purchases Two Slices of Pizza and Six Breadsticks

question 32

Multiple Choice

If Katie purchases two slices of pizza and six breadsticks to maximize her total utility,then

• A)a slice of pizza costs three times as much as a breadstick.
• B)her marginal utility from the second slice of pizza divided by the price of a slice of pizza is equal to her marginal utility from the sixth breadstick divided by the price of a breadstick.
• C)a breadstick costs three times as much as a slice of pizza.
• D)she spends more on pizza than she spends on breadsticks.
• E)her marginal utility from the second slice of pizza equals her marginal utility from the sixth breadstick.

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Definitions:

Potential Loss

The possibility of financial detriment or damage in the future.

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A contract that provides financial reimbursement to the owner or renter of a structure and its contents, in case of damage or theft.

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Insurance coverage against loss or liability stemming from accidents or unexpected events, excluding life, health, and property insurance.