Table 7.6 -Refer to Table 7.6.Pete Has $10 to Spend.He Buys Four

question 111

Multiple Choice

Table 7.6
-Refer to Table 7.6.Pete has $10 to spend.He buys four cookies and three candies.Using the equimarginal rule,which of the following is true?

• A) Pete is maximizing his utility.
• B) Pete is not spending the entire $10.
• C) Pete could make himself better off by buying less candy and more cookies.
• D) Pete could make himself better off by buying less cookies and more candy.

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Definitions:

Diminishing Marginal Utility

The decrease in satisfaction or usefulness as additional units of a product are consumed.

Staples

Basic or essential food items or goods that are widely used and regularly consumed by households.

Paper Clips

Tiny segments of twisted wire or plastic designed to keep pages of paper attached.

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one additional unit of a good or service.