When You Chose to Buy the Second Cup of Coffee

question 346

Multiple Choice

When you chose to buy the second cup of coffee instead of the third bagel, which of the following is necessarily CORRECT?

• A) The second coffee will give you higher marginal utility.
• B) The second coffee is cheaper than the third bagel.
• C) The marginal utility per dollar from the third bagel is less than the marginal utility per dollar from the second coffee.
• D) Both answers A and C are correct.

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Definitions:

Demand For Land

The economic desire or need for land for various purposes such as agriculture, residential, commercial, or industrial developments.

Resource

An economic input used to produce goods and services, such as labor, capital, and natural resources.

Land

In economics, it refers to all natural resources used to produce goods and services, including agricultural and undeveloped land.

Interest Rate

The cost of borrowing money or the reward for saving, usually expressed as a percentage of the principal amount per period.