Sheryl Is Maximizing Her Utility

question 225

Multiple Choice

Sheryl is maximizing her utility.She notices that her marginal utility from the last package of bubble gum consumed is greater than her marginal utility from the last package of mints consumed.This result means that the

• A) price of a package of gum is greater than the price of a package of mints.
• B) price of a package of mints is greater than the price of a package of gum.
• C) total utility of gum must be falling as more gum is consumed.
• D) total utility of mints must be falling as more mints are consumed.
• E) More information is needed to determine which, if any, of the above answers is correct.

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Definitions:

Incidence

The allocation of the burden of a tax between buyers and sellers, or the effect of a policy or economic event on particular groups.

Industrial Market Countries

Nations with highly developed industries where the majority of economic activities are focused on manufacturing and services.

High-Income Economies

Countries or regions characterized by a high gross domestic product (GDP) per capita, indicating a higher standard of living and economic development.

Inefficient Use

Inefficient use describes a scenario in which resources, such as time, money, or materials, are not utilized in a way that maximizes productivity or value.