A consumer faces the following situation. Her marginal utility of a luxury good with a price of $100 is 100 utils. An alternative good has a marginal utility of 75 utils and a price of $50. What should she do if she wishes to increase her total utility?Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.apurchase fewer of the luxury goods and more of the alternative goodsbpurchase more of the luxury goods and fewer of the alternative goodscpurchase fewer of the luxury goods and fewer of the alternative goodsdpurchase more of the luxury goods and more of the alternative goods

Suppose that every morning Samantha buys both tea and coffee. The price of a cup of tea is $1, and the price of a cup of coffee is $2. At her current consumption level, which exhausts all of her income, Samantha’s marginal utility (MU) from drinking the last cup of tea she buys is 50 utils and her marginal utility from drinking the last cup of coffee she buys is 80 utils. To maximize her utility given her current income, Samantha should:Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aBuy less tea and more coffeebBuy more tea and less coffeecBuy more of both tea and coffeedNot change her consumption of tea and coffee

A consumer’s budget line depictsSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.athe utility that an individual would receive from consuming various combinations of two goodsbthe combinations of goods that a person can afford at given prices and incomechow changes in income affect utility for given pricesdthe combinations of goods where marginal utility divided by price is the same for all goods

According to the principle of marginal decision-making, in order to make the best of any situation a decision-maker should:Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aconsider the impact on average costs and benefitsbtake the marginal costs and benefits of the action into accountclook at the total benefits received up to that pointdchoose a consumption level where marginal utility equals priceenever consume a good whose price is less than the marginal utility

Assume that product Alpha and product Beta are both priced at $1 per unit and that Ellie has $20 to spend on Alpha and Beta. She buys 8 units of Alpha and 12 units of Beta. The marginal utilities of the last unit of Alpha and Beta that she purchases are 40 utils and 20 utils, respectively. This indicates thatMultiple ChoiceEllie should make no change in consumption.given another dollar, Ellie should buy an additional unit of Beta.in order to maximize utility, Ellie should buy more Beta and less Alpha.in order to maximize utility, Ellie should buy more Alpha and less Beta.

Suppose at her current level of consumption, a person enjoys going to an additional baseball game three times as much as seeing an additional new movie. The price of a ticket for a baseball game is $30, and the price of a ticket for a movie is $15. Is the person spending her income (for these two goods) in a manner that maximizes her satisfaction?Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aYes, she is.bNo, she should increase the consumption of baseball games and movies.cNo, she should increase the consumption of baseball games and decrease the consumption of movies.dNo, she should decrease the consumption of baseball games and increase the consumption of movies.