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

question 23

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.Holding prices constant, when Keira's income changed from $18 to $23, what happens to her total utility and to the marginal utilities of the last cup of soup and the last sandwich purchased?

• A)Her total utility increases but the marginal utilities of the last cup of soup and the last sandwich consumed decrease.
• B)Her total utility, the marginal utility of the last cup of soup consumed, and the marginal utility of the last sandwich consumed all increase.
• C)Her total utility decreases but the marginal utilities of the last cup of soup and the last sandwich consumed increase.
• D)Her total utility and the marginal utility of the last cup of soup consumed increase but marginal utility of the last sandwich consumed decreases.
• E)Her total utility and the marginal utility of the last sandwich consumed increase but marginal utility of the last cup of soup consumed decreases.

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Definitions:

Hydro-

A prefix indicating relation to water.

Hydrotherapy

The use of water in the treatment of different conditions, including arthritis and related rheumatic complaints.

Water

A colorless, odorless, tasteless liquid that forms the seas, lakes, rivers, and rain, and is the basis of the fluids of living organisms.

Uni-

A prefix meaning "one" or "single," used to denote singularity or uniqueness in various terms.