An economist observes two consumers in a supermarket. One of the ...

[yoooooman]

An economist observes two consumers in a supermarket. One of the consumers buys a case of Coca-Cola and the other buys a case of Pepsi-Cola. Both colas sell for the same price and the ages and incomes of the consumers are also the same.
 
  Based on this information, how would the economist explain the consumers' choices?
  A) Both consumers should have purchased less than a case because they would be able to buy more later.
  B) Both consumers should have considered buying other colas that had lower prices.
  C) Apparently, the consumers had different tastes.
  D) One of the consumers made the wrong choice, but it is impossible to say which one.

Question 2

Which of the following arguments could be made as evidence that the market for cage-free eggs is perfectly competitive?
 
  A) As more farmers began selling cage-free eggs, the increase in supply has driven down prices to the point where they just cover the cost of production.
  B) Sales of cage-free eggs have increased at a rate of 20 percent per year.
  C) The profits earned by farmers who sell cage-free eggs have continued to grow, despite the increasing number of farmers entering this market.
  D) The U.S. Department of Agriculture has established standards for the labeling of cage-free eggs.

[nickk12214]

Answer to Question 1

C

Answer to Question 2

A