Question 11 (1.25 points)

Katherine consumes tank tops and hairbrushes. Both items cost $2 (price of tank tops = $2 and price of hairbrushes = $2). Her marginal utility of consuming another unit of tank tops is 4, while her marginal utility of consuming another unit of hairbrushes is 2. Which of the following statements is true? (Hint: Tank tops are on the y-axis and hairbrushes are on the x-axis).

Question 11 options:

a)	Katherine could be on a higher indifference curve if she purchased more hairbrushes and fewer tank tops (MU of tank tops is 2; MU of hairbrushes is 1).

b)	Katherine could be on a higher indifference curve if she purchased more tank tops and fewer hairbrushes.

c)	Katherine has purchased her optimal bundle.

d)	Katherine could be on a higher indifference curve if she bought fewer of both items.

e)	None of the above.

Question 12 (1.25 points)

John consumes 5 tacos and 7 burritos. At this bundle, his marginal utility of consuming one more taco is 10 while his marginal utility of consuming one more burrito is 5. Which of the following statements is true?

Question 12 options:

a)	If John consumes 6 tacos and 6 burritos, he will be on a lower indifference curve.

b)	If John consumes 6 tacos and 8 burritos, he will be on the same indifference curve.

c)	If John consumes 6 tacos and 8 burritos, he will be on a lower indifference curve.

d)	If John consumes 4 tacos and 8 burritos, he will be on a lower indifference curve.

e)	If John consumes 4 tacos and 8 burritos, he will be on the same indifference curve.