Suppose the Price of a Soda Is $2 Each, the Price

question 29

Multiple Choice

Suppose the price of a soda is $2 each, the price of a hot dog is $3 each and the budget is $20. If the marginal utility of the fourth soda is 100 and the marginal utility of the fourth hot dog is 150, to maximize utility, a person will buy

• A) 4 sodas and 4 hot dogs.
• B) more hotdogs than 4 and fewer sodas than 4 because hot dogs provide more utility.
• C) more sodas than 4 to increase their utility.
• D) fewer sodas than 4 and more hot dogs than 4.

---

Definitions:

Post-Trauma Recovery

The process of healing and regaining a sense of normalcy and well-being after experiencing a traumatic event.

Cognitive Reactions

Mental responses or thoughts that occur in response to a situation or information.

Traumatic Experience

An event that causes psychological distress and can lead to long-term mental health issues like PTSD.

Social Psychologists

Experts who study how individuals think, influence, and relate to one another within the context of society.