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:

Acute Stressor

A short-term cause of stress that triggers an immediate physiological response, typically perceived as challenging or threatening.

Duration

The length of time that something continues or exists, often referring to events or conditions.

Inconveniences

Minor difficulties or disturbances that cause a temporary disruption or discomfort in daily activities.

Physical and Mental Health

Refers to the overall state of well-being involving both the body's physical condition and the mind's psychological and emotional state.