Timothy Is Trying to Figure Out What Combination of Bags

question 18

Multiple Choice

Timothy is trying to figure out what combination of bags of peanuts and bags of popcorn he should buy with his $15 budget.The price of peanuts is currently $5 per bag and the price of popcorn is currently $2 per bag.If Timothy's marginal utility from consuming his third bag of peanuts is 15 utils and his marginal utility from consuming his second bag of popcorn is 6 utils,Timothy should

• A) consume more bags of popcorn.
• B) consume more bags of peanuts.
• C) not change his consumption.
• D) consume fewer bags of peanuts.
• E) consume fewer bags of popcorn.

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Definitions:

Anne Hutchinson

A Puritan spiritual adviser, mother of 15, and an important participant in the Antinomian Controversy that shook the infant Massachusetts Bay Colony from 1636 to 1638.

Puritans

A religious group from England who sought to purify the Church of England and who established colonies in New England in the early 17th century.

Overseas Empire

A group of territories or nations under the rule of a single sovereign state or monarch, usually spread across continents.

Great Migration

The movement of over six million African Americans from the rural Southern United States to urban areas in the North and West, from approximately 1916 to 1970, seeking better economic opportunities and escaping racial segregation.