Question 1
The ratio of the marginal utility of tea to the marginal utility of scones is six for an individual maximizing utility. This implies that
◦ a scone is six times more valuable than a cup of tea.
◦ the tea to scones price ratio is one to six.
◦ the tea to scones price ratio is six to one.
◦ this person always eats scones with tea.
Question 2
Sierra likes chocolate-covered deviled eggs. After eating 10 chocolate-covered deviled eggs, she switches to strawberry ice cream covered in sauerkraut. We can conclude that
◦ the chocolate-covered deviled eggs made Sierra sick.
◦ the chocolate-covered deviled eggs now have a negative marginal utility.
◦ at this point, the chocolate-covered deviled eggs have a lower marginal utility per dollar spent than that of strawberry ice cream covered in sauerkraut.
◦ Sierra is minimizing her utility.
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