Demand and Utility Table for Milk Shakes -If the Price of Milk Shakes Was $2

question 51

Multiple Choice

Demand and Utility Table for Milk Shakes $$\begin{array} { | c | c | c | c | } \hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \\\hline \$ 4 & 1 & & \\\hline \$ 3.50 & 2 & & \\\hline \$ 3.00 & 3 & & \\\hline \$ 2.50 & 4 & & \\\hline \$ 2.00 & 5 & & \\\hline\end{array}$$
-If the price of milk shakes was $2.50 each,your total utility would be ______ and your marginal utility would be ______.

• A)$13.00 and $4.00
• B)$15.00 and $4.00
• C)$13.00 and $2.50
• D)$15.00 and $2.50

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Definitions:

Price Leadership Model

A market situation in which one leading company sets prices that other companies in the sector follow.

Antitrust Sanctions

Penalties imposed on businesses or individuals for violating antitrust laws, intended to promote fair competition and prevent monopolistic practices.

Price Signalling

A mechanism where the price of a good or service provides information to buyers and sellers which influences their decisions.

Cartels

An association of independent firms or countries that agree to coordinate their production and pricing decisions to monopolize a market and maximize collective profits.