Table 7-4 -Refer to Table 7-4

question 8

Multiple Choice

Table 7-4
$\begin{array}{|c|c|c|c|c|}\hline & \text { Steak \& Cheese } & \text { Steak \& Cheese } & \text { Grilled Chicken } & \text { Grilled Chicken } \\\hline \text { Quantity } & M U & M U / P & M U & M U / P \\\hline 1 & 40 & 10 & 30 & 15 \\\hline 2 & 32 & 8 & 24 & 12 \\\hline 3 & 20 & 5 & 16 & 8 \\\hline 4 & 12 & 3 & 12 & 6 \\\hline 5 & 6 & 1.5 & 8 & 4 \\\hline 6 & 2 & 0.5 & 4 & 2 \\\hline\end{array}$
-Refer to Table 7-4.For steak and cheese sandwiches and grilled chicken sandwiches,the table contains the values of the marginal utility (MU) and marginal utility per dollar (MU/P) for Mabel Jarvis.Mabel has $14 to spend on steak and cheese sandwiches and grilled chicken sandwiches.Which of the following statements is false?

• A) The price of steak and cheese sandwiches is $4. The price of grilled chicken sandwiches is $2.
• B) If Mabel maximizes her utility she will buy three grilled chicken sandwiches.
• C) If Mabel maximizes her utility she will buy two steak and cheese sandwiches.
• D) We do not have enough information to determine how many sandwiches Mabel will buy to maximize her utility.

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