The Cost of Basics Like Milk, Bread, Potatoes and Bananas

question 37

Multiple Choice

The cost of basics like milk, bread, potatoes and bananas has jumped in the past year, forcing families to nix luxuries, steer away from organic goods and buy more house brands. "I think it's affecting everybody," said Elize Joseph 48, a nursing attendant. "To spend $40 on groceries is nothing. It doesn't go a long way." When food prices increase, what will happen to Elize's total utility?

• A) It increases.
• B) It stays the same.
• C) It decreases.
• D) It cannot be determined without knowing her total income.

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Definitions:

Descriptive Statistics

Statistical methods used to summarize, show, and analyze data sets to describe their main features often through graphs, tables, and numerical summaries.

James-Lange Theory

A theory of emotion that suggests emotions occur as a result of physiological reactions to events, implying that physical reactions precede and drive the emotional experience.

Schachter-Singer Theory

A psychological theory suggesting that emotional experiences arise from cognitive appraisal of a physiological response to stimuli.

Positive Psychology

A branch of psychology that focuses on the study and promotion of positive aspects of human life, such as happiness, well-being, and flourishing.