Question 1
Refer to the information provided in Figure 6.10 below to answer the question(s) that follow.
Refer to Figure 6.10. Kyle would increase his consumption of turkey sandwiches from 7 to 9 per week if their price fell from $6 to $4. This illustrates the idea of
◦ consumer surplus.
◦ the law of diminishing marginal utility.
◦ cross-price elasticity of demand.
◦ technical efficiency.
Question 2
Refer to the information provided in Figure 6.10 below to answer the question(s) that follow.
Refer to Figure 6.10. The current price of a turkey sandwich is $4. If Kyle is currently buying seven turkey sandwiches a week, he ________ maximizing utility because the marginal utility ________ than its price.
◦ is; from the seventh sandwich is greater
◦ is; from the seventh sandwich is less
◦ is not; gained from the seventh sandwich is less
◦ is not; gained from the seventh sandwich is greater
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