Table 6.5 -Refer to Table 6.5, Which Lists the Values of Harry

question 209

Multiple Choice

Table 6.5
-Refer to Table 6.5, which lists the values of Harry Taber's marginal utility and marginal utility per dollar for burgers and sushi rolls.Assume that the price of the burgers is $4 and the price of sushi rolls is $2.When Harry's income is $14 he buys two burgers and three sushi rolls.The last column lists the values of the marginal utility per dollar for sushi rolls when the price of sushi rolls decreases to $1.Complete this statement: As a result of the change in price, the marginal utility of each sushi roll Harry consumes increases, and

• A)the substitution effect of the price change will cause Harry to buy more sushi rolls and fewer burgers.
• B)the substitution effect of the price change will cause Harry to buy more sushi rolls if they are a normal good, and fewer sushi rolls if they are an inferior good.
• C)the substitution effect will cause Harry to buy another burger because his purchasing power has increased.
• D)the substitution effect will cause Harry to buy fewer sushi rolls.

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Definitions:

Daily Sandwich Sales

The quantity of sandwiches sold in a day, typically used to track business performance over time.

Sandwich Shop

A food establishment that specializes in making and selling sandwiches with a variety of fillings and bread types.

Exponential Smoothing

A rule of thumb technique for smoothing time series data using the exponential window function, commonly used for smoothing past data to predict future values.

Time Series

A time series is a sequence of data points collected or recorded over a specified period, showing the values of a variable or several variables over time.