1) Suppose that at a baseball game, you consumed 3 hot dogs (each priced at $5)
ID: 1156270 • Letter: 1
Question
1) Suppose that at a baseball game, you consumed 3 hot dogs (each priced at $5) and 4 sodas (each priced at $3). The 3rd hot dog provided a marginal utility of 20, while the 4th soda provided a marginal utility of 15. In order to maximize utility, should you have changed your consumption? O a) No, you had maximized your utility. O b) Yes, you should have consumed more hot dogs and fewer sodas. c) Yes, you should have consumed more sodas and fewer hot dogs. Od) Yes, you should have consumed fewer of both hot dogs and sodas. Submit You currently have O submissions for this question. Only 10 submission are allowed. You can make 10 more submissions for this question. Survey Question) 2) Please provide your rationale for your answer to the previous question Submit You currently have O submissions for this question. Only 10 submission are allowed. You can make 10 more submissions for this question. 3) If you receive 10 units of utility from consuming one cup of coffee and 16 units of utility from consuming two cups of coffee, which of the following is the likely amount of utility you will receive from consuming three cups of coffee? Oa) 6 units of utility b) 18 units of utility c) 22 units of utility O d) 26 units of utility Submit You currently have 0 submissions for this question. Only 10 submission are allowed. You can make 10 more submissions for this question.Explanation / Answer
Ans 1)
Having 3rd hotdog have provided Utility of 20 ie higher than if he had consumed 4th soda which is 15
Hence option 1 is correct response
ANs 2)
1st cup of tea utility is 10 then 2 cups cumulative utility is 16 and we know the priciple of dimnishing rate of marginal utility hence the utility should increase with decrasing rate hence cumulative utility from 3 cups of tea should be less than 22 but more than 16
Hence correct answer is 18
As 3)
Sushi's objective is just to maximise utility assuming he has enough of wealth then he should consume less of sushi and more of sashmi
Option A is correct
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