Indicate the answer choice that best completes the statement or answers the question. 1. Ahmed spends all of his money on movie tickets and groceries. Suppose Ahmed is presented with two options: A and B. Option A gives him a voucher of SX that he can only spend on groceries. Option B gives him SX that he can spend on either or both of the goods. Which of the following is correct assuming Ahmed is indifferent between the two options? a. Ahmed spends at least $X on groceries. b. Ahmed spends less than SX on groceries. c. Ahmed must be indifferent between movie tickets and groceries. d. Ahmed spends his entire income on movie tickets.

Indicate the answer choice that best completes the statement or answers the question. 1. Ahmed spends all of his money on movie tickets and groceries. Suppose Ahmed is presented with two options: A and B. Option A gives him a voucher of SX that he can only spend on groceries. Option B gives him SX that he can spend on either or both of the goods. Which of the following is correct assuming Ahmed is indifferent between the two options? a. Ahmed spends at least $X on groceries. b. Ahmed spends less than SX on groceries. c. Ahmed must be indifferent between movie tickets and groceries. d. Ahmed spends his entire income on movie tickets.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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