The Price of Hamburgers Is $2 and the Price of Movies

question 163

Multiple Choice

The price of hamburgers is $2 and the price of movies is $4. The consumer has $16 of income. The consumer is purchasing 3 hamburgers and receiving 20 utils for the last hamburger. He is also purchasing 2 movies and receiving 40 utils for the last movie. This set of goods

• A) is an optimum since the entire income is spent and the marginal utility per dollar spent is the same for the last unit of each good.
• B) is an optimum since the entire income is spent and total utility is maximized.
• C) is not an optimum because the marginal utility per dollar spent is greater for hamburgers than for movies.
• D) is not an optimum because the consumer has not spent all of his money.

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Definitions:

Hg(OAc)2

Mercury(II) acetate, a chemical compound used as a reagent in organic synthesis, particularly in oxymercuration reactions.

NaBH4

Sodium borohydride, a reducing agent commonly used in organic synthesis to reduce aldehydes and ketones to alcohols.

Regiochemistry

The branch of chemistry that concerns itself with the location at which atoms are positioned in the product of a chemical reaction.

Transition State

A high-energy state during a chemical reaction through which reactants must pass before becoming products.