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.
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.1P
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Question
![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 $X 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F40506f6b-fe40-4e9d-bf53-ea1b2893a62d%2F6edeadf8-8fe8-4353-91d9-460724ddac85%2F7437vn9_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $X 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.
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