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

question 168

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,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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