Table 10-5 -Refer to Table 10-5, Which Lists the Values of Harry

question 290

Multiple Choice

Table 10-5

-Refer to Table 10-5, which lists the values of Harry Taber's marginal utility and marginal utility per dollar for Italian submarine (sub) sandwiches and tacos.Assume that the price of a sub sandwich is $4 and the price of a taco is $2.When Harry's income is $14, he buys two Italian sub sandwiches and three tacos.The last column lists the values of the marginal utility per dollar for tacos when the price of a taco decreases to $1.Complete this statement: As a result of the change in price, the marginal utility of each taco Harry consumes increases and

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

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Definitions:

Nuclear Power Plants

Facilities that generate electricity through the controlled nuclear reaction of uranium or other nuclear fuels, producing heat to boil water and produce steam for driving turbines.

Fission

The splitting of an atomic nucleus into two or more smaller nuclei, accompanied by the release of energy and usually one or more neutrons.

Fusion

A process where two light atomic nuclei combine to form a heavier nucleus, releasing energy.