Use the Following to Answer Questions $\text {Table: Denise's Consumption of Coffee and Gasoline}$

question 161

Multiple Choice

Use the following to answer questions : $\text {Table: Denise's Consumption of Coffee and Gasoline}$
$\text {Assume that Denise's spending on coffee and gasoline is \$200 each month and that all of}$
$\text { the consumption bundles in the table are on her budget line.}$
$\begin{array}{ccccc}\begin{array}{c}\text { Consumption } \\\text { Bundle }\end{array} & \begin{array}{c}\text { Quantity of } \\\text { Coffee in } \\\text { Consumption } \\\text { Bundle }\end{array} & \begin{array}{c}\text { Total Utility } \\\text { from Coffee } \\\text { Consumption }\end{array} & \begin{array}{c}\text { Quantity of } \\\text { Gasoline in } \\\text { Consumption } \\\text { Bundle }\end{array} & \begin{array}{c}\text { Total Utility from } \\\text { Gasoline in } \\\text { Consumption } \\\text { Bundle }\end{array} \\\hline \text { A } & 200 & 140 \text { utils } & 0 & 0 \text { utils } \\\text { B } & 150 & 120 \text { utils } & 25 & 40 \text { utils } \\\text { C } & 100 & 90 \text { utils } & 50 & 55 \text { utils } \\\text { D } & 50 & 50 \text { utils } & 75 & 65 \text { utils } \\\text { E } & 0 & 0 \text { utils } & 100 & 70 \text { utils } \\\hline\end{array}$

-(Table: Denise's Consumption of Coffee and Gasoline) Use Table: Denise's Consumption of Coffee and Gasoline.When Denise maximizes her utility,her marginal utility per dollar spent on litres of gasoline equals _____ utils per dollar.

• A) 0.6
• B) 0.8
• C) 0.5
• D) 1.6

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