Table 10-2 Table 10-2 Above Shows Keira's Utility from Soup and Sandwiches

question 252

Multiple Choice

Table 10-2

Table 10-2 above shows Keira's utility from soup and sandwiches. The price of soup is $2 per cup and the price of a sandwich is $3. Keira has $18 to spend on these two goods.
-Refer to Table 10-2.Suppose Keira's income increases from $18 to $23 but prices have not changed.What is her utility maximizing bundle now?

• A)6 cups of soup and 5 sandwiches
• B)4 cups of soup and 5 sandwiches
• C)5 cups of soup and 4 sandwiches
• D)5 cups of soup and 5 sandwiches

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Definitions:

Payment of Dividends

The distribution of a portion of a company's earnings to its shareholders as determined by the company's board of directors.

Financing Activities

Transactions related to raising capital or repaying investors, including issuing equity, obtaining loans, and paying dividends.

Spreadsheet

A digital tool used for organizing, analyzing, and storing data in tabular form, consisting of rows and columns to facilitate calculations and management of information.

Indirect Method

A way of calculating cash flows from operating activities by starting with net income and adjusting for changes in non-cash accounts on the balance sheet.