Timothy Is Trying to Figure Out What Combination of Bags

question 51

Multiple Choice

Timothy is trying to figure out what combination of bags of peanuts and bags of popcorn he should buy with his $13 budget. The price of peanuts is currently $5 per bag and the price of popcorn is currently $2 per bag. If Timothy's marginal utility from consuming his third bag of peanuts is 15 utils and his marginal utility from consuming his second bag of popcorn is 6 utils, Timothy should:

• A) consume more bags of popcorn.
• B) consume more bags of peanuts.
• C) not change his consumption.
• D) consume fewer bags of peanuts.
• E) consume fewer bags of popcorn.

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Definitions:

High Income

Referring to a level of earnings that substantially exceeds the average for a given population or area.

Self-Advancement

The act of improving one's position, status, or self-interest, often through personal development or career progression.

Welfare

Systems or policies that provide assistance and support to individuals in need to ensure their basic living conditions and well-being are met.

Civil Rights

Rights that protect individuals' freedom and ensure equality under the law, regardless of race, religion, or other characteristics.