Use the Table Below to Answer the Following Question

question 23

Multiple Choice

Use the table below to answer the following question.
Table 8.2.5

-Refer to Table 8.2.5.Cindy enjoys golf and tennis.The table shows the marginal utility she gets from each activity. Cindy has $70 a month to spend,and she can spend as much time as she likes on her leisure pursuits.The price of an hour of golf is $10,and the price of an hour of tennis is $5.
Cindy decides to golf for 5 hours a month and play tennis for 4 hours a month.
If Cindy spends a dollar more on golf and a dollar less on tennis,her total utility ________.
If Cindy spends a dollar less on golf and a dollar more on tennis,her total utility ________.

• A)decreases;decreases
• B)increases;decreases
• C)decreases;increases
• D)increases;increases
• E)does not change;does not change

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Definitions:

Air Tanks

Reservoirs used in pneumatic systems of vehicles, especially in air brake systems, to store compressed air needed for the operation of brakes and other components.

Diversification

The strategy of spreading investments among different financial instruments, industries, or other categories to reduce risk.

Portfolio Risk

Describes the uncertainty or variability of returns associated with a portfolio of investments, highlighting the combined risk of individual assets.