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:

Neutral Moods

Emotional states that are neither distinctly positive nor negative, often characterized by a lack of strong feelings one way or the other.

Depressed Person

An individual experiencing a state of low mood and aversion to activity, affecting their thoughts, behavior, feelings, and sense of well-being.

Inner Processes

The internal mental and emotional mechanisms that guide thoughts, feelings, and behaviors in individuals.

Social Relations

The various forms and dynamics of interactions between individuals and groups, including cooperation, conflict, and social exchange.