A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 50 cents each. The marginal utilities derived from each product are as shown in following table. Number of Items MU of Chocolates MU of Hard Candies 60 150 50 140 3 40 120 4. 30 100 5. 20 80 6 10 70 7 5 50 8 20 If the child buys either chocolates or hard candies one piece at a time, what will be his first two purchases? Multiple Choice a hard candy, followed by another hard candy a hard candy, followed by a chocolate a chocolate, followed by a hard candy a chocolate, followed by another chocolate
A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 50 cents each. The marginal utilities derived from each product are as shown in following table. Number of Items MU of Chocolates MU of Hard Candies 60 150 50 140 3 40 120 4. 30 100 5. 20 80 6 10 70 7 5 50 8 20 If the child buys either chocolates or hard candies one piece at a time, what will be his first two purchases? Multiple Choice a hard candy, followed by another hard candy a hard candy, followed by a chocolate a chocolate, followed by a hard candy a chocolate, followed by another chocolate
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 50 cents each. The marginal utilities derived from each product are as shown in the
following table.
Number of Items
MU of Chocolates
MU of Hard Candies
60
150
2.
50
140
40
120
30
100
5
20
80
6.
10
70
5
50
8
20
If the child buys either chocolates or hard candies one piece at a time, what will be his first two purchases?
Multiple Choice
a hard candy, followed by another hard candy
a hard candy, followed by a chocolate
a chocolate, followed by a hard candy
a chocolate, followed by another chocolate
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