Fran Runs a Doughnut Shop in a Tiny 3-Person Town

question 21

Multiple Choice

Fran runs a doughnut shop in a tiny 3-person town.Fran's rational consumers have the following demand schedules: $$\begin{array} { | l | l | l | l | } \hline \text { Price } & \text { Art } & \text { Betty } & \text { Cal } \\\hline 10 \text { cents } & 10 & 4 & 6 \\\hline 25 \text { cents } & 9 & 2 & 5 \\\hline 35 \text { cents } & 7 & 1 & 5 \\\hline 50 \text { cents } & 5 & 0 & 4 \\\hline\end{array}$$
From the data you can assume that Betty

• A)thinks that doughnuts are an inferior good.
• B)would get more marginal utility from her first doughnut than anything else that she buys for 50 cents.
• C)would get less marginal utility from her first doughnut than anything else that she buys for 50 cents.
• D)is not a rational consumer.

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Definitions:

Unethical Tactics

Strategies or actions that violate moral principles or professional standards, often used to gain unfair advantage or harm others.

Victim

An individual who suffers harm or loss as a result of an action, event, or situation, often without fault on their part.

Response

The reaction to a specific stimulus or set of conditions, often measured in terms of behavior, performance, or outcomes.

Locus of Control

A psychological concept referring to the extent to which individuals believe they have power over events in their lives.