Table 7-2 Table 7-2 Above Shows Keira's Utility from Soup and Sandwiches

question 44

Multiple Choice

Table 7-2
$\begin{array}{|c|c|c|c|}\hline\begin{array}{c}\text { Quantity of } \\\text { Soup (cups) }\end{array} & \text { Total Utility } & \begin{array}{c}\text { Quantity of } \\\text { Sandwiches }\end{array} & \text { Total Utility } \\\hline 1 & 40 & 1 & 45 \\\hline 2 & 60 & 2 & 75 \\\hline 3 & 72 & 3 & 102 \\\hline 4 & 82 & 4 & 120 \\\hline 5 & 88 & 5 & 135 \\\hline 6 & 90 & 6 & 145 \\\hline\end{array}$ Table 7-2 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 7-2.Holding prices constant,when Keira's income changed from $18 to $23,her utility maximizing bundle changed.Based on your answers to her optimal choices at the two income levels,what type of goods are soup and sandwiches?

• A) Soup is an inferior good and sandwiches are a normal good.
• B) Soup is a normal good and sandwiches are an inferior good.
• C) Both soup and sandwiches are normal goods.
• D) Both soup and sandwiches are inferior goods.

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Definitions:

Total Sum

The aggregation of all values or observations in a dataset.

Model Mean Square

In the context of ANOVA, it refers to the mean squared differences between the observed values and the values predicted by the model.

Observations

Data collected through watching, measuring, and recording phenomena as part of a scientific study or research.

Mean Square Error

A metric that measures the average of the squares of the errors—that is, the average squared difference between the estimated values and the actual value.