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1. Marginal Utility A consumer faces the following stuation. Her marginal utility of a luxury good with a price of $100 is 200 utils. An
1. Marginal Utility A consumer faces the following stuation. Her marginal utility of a luxury good with a price of $100 is 200 utils. An alternative good has a marginal utility of 75 utils and a price of ss0, What should she do if she wishes to increase her total utility? C A. purchase fewer of the luxury goods and more of the alternative goods C B. purchase more of the luxury goods and fewer of the alternative goods C c. purchase fewer of the luxury goods and fewer of the alternative goods D. purchase more of the luxury goods and more of the alternative goods Question 2: Substitution/Income effect 2. Substitution/Income effect e at her current level of consumption of one baseball game and one movie, a person enjoys going to suppos an additional baseball game three times as much as seeing an additional new movie. The price of a ticket for a baseball game is $50, and the price of a ticket for a movie is $10. 1s the person spending her income (for these two goods) in a manner that maximizes her satisfaction? A. Yes, she is. C B. No, she should increase the consumption of baseball games and movies. C C. No, she should increase the consumption of baseball games and decrease the consumption of movies No, she should decrease the consumption of baseball games and increase the consumption of movies D
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