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Consumer Choice and Behavioural Economics Sue loves consuming potato chips and fizzy drinks. The table below shows Sue's marginal utility from consuming the first four

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Consumer Choice and Behavioural Economics Sue loves consuming potato chips and fizzy drinks. The table below shows Sue's marginal utility from consuming the first four units of potato chip bags and fizzy drinks. Quantity Marginal UtilityK Marginal Utility! Potato chip bags Fizzy drinks l 30 40 2 25 35 3 20 26 4 15 18 The price of a bag of potato chips is $2.00, and the price of a fizzy drink is $1.00. A If Sue has only $10.00 to spend on the two goods, she will buy how many units of each item? Explain how she chooses the bundle of goods. B. You have a choice between the following three options - Option 1: A guaranteed $500 - Option 2: 50% chance of $200 plus 50% chance of $600 - Option 3: A guaranteed $300 and a 50% chance of receiving another $500 You choose option 3. Are you risk-averse, risk-neutral, or a risk-ta ker? Explain using relevant economic concepts

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