Question
1.Juanita and her friend go out for lunch at a nearby food court. Juanita is trying to decide whether to order a burrito or a
1.Juanita and her friend go out for lunch at a nearby food court. Juanita is trying to decide whether to order a burrito or a taco. Which of the following factors will directly affect her decision?Check all that apply.
The relative prices of burritos and tacos
The expected benefits of the two options
The friend's recommendations
The color of her friend's car
The friend's budget
2.Juanita has always been fond of lobster. However, after having lobster every day for a week while on vacation, she grew tired of her favorite meal. How can economic theory help explain this change of heart?
Because of her limited income, Juanita realizes that she will be happier if she substitutes fish burgers for lobster.
Because lobster is very expensive, Juanita feels guilty about spending so much money on this item.
As Juanita consumes more and more of her favorite meal, the marginal utility of additional servings of lobster declines.
Juanita realizes that lobsters are an endangered species and decides that she should stop eating them.
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