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

question 94

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:

Forever Foreigner

A concept describing the persistent perception of certain ethnic or racial groups as not belonging to the dominant national identity, regardless of their citizenship status.

South Asians

Individuals originating from the southern region of Asia, which includes countries like India, Pakistan, Bangladesh, and Sri Lanka.

Skin Color

A person's complexion or pigmentation, significantly influenced by genetic inheritance and often used as a basis for social and racial categorization.

Religious Discrimination

Unfair treatment of individuals based on their religious beliefs or practices.