What is a nonrival good? Give an example.
What will be an ideal response?
Question 2
Sam consumes only sandwiches and soda and maximizes his total utility. Suppose that the price of a sandwich falls. At the new consumer equilibrium, Sam substitutes ________ for ________.
Sam's marginal utility from soda ________ and his marginal utility per dollar spent on sandwiches ________. A) sandwiches; soda; increases; increases
B) soda; sandwiches; decreases; increases
C) sandwiches; soda; increases; decreases
D) soda; sandwiches; stays the same; stays the same