Author Question: Lisa is spending all of her income on compact discs and downloadable games for her smart phone. She ... (Read 30 times)

lindiwe

  • Hero Member
  • *****
  • Posts: 577
Lisa is spending all of her income on compact discs and downloadable games for her smart phone. She finds that the marginal utility from the last compact disc she buys is 30 and the marginal utility from the last downloadable game is 10.
 
  The price of a compact disc is 15 and the price of a downloadable game is 5. Lisa should A) increase her consumption of compact discs.
  B) increase her consumption of downloadable games.
  C) not change her consumption of downloadable games and compact discs.
  D) decrease the price of downloadable games.

Question 2

In the figure above, a decrease in the price of a bag of potato chips would result in the budget line
 
  A) making a parallel shift toward point a.
  B) making a parallel shift toward point c.
  C) becoming flatter.
  D) becoming steeper.



underwood14

  • Sr. Member
  • ****
  • Posts: 346
Answer to Question 1

C

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

For a complete list of videos, visit our video library