Question 3 CONTENT FEEDBACK Suppose that if Kathy consumes one more bottle of so

Question

Question 3 CONTENT FEEDBACK Suppose that if Kathy consumes one more bottle of soda her total utilty will increase by 50 utils, However, to purchase this one additional bottle of soda she will have to give up consuming three cheeseburgers which curr her total utility. If she chooses to consume one more bottle of soda, she will obtain a ently contribute 75 utils to Select the correct answer below: O net utility gain of 25 utils O net utility loss of 25 utils O net utility gain of 50 utils O net utility gain of 500 utils Content attribution

Explanation / Answer

Gain in utility due to consuming one more soda=50 utils

loss in utility due to consuming one more soda(which requires giving up 3 cheeseburgers)=75 utility

Thus change in utility=Gain-loss=50-75=-25

Thus if Kathy chooses to consume one more bottle of soda then she will suffer a net utility loss of 25 utilis

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