$1$

Multiple Choice

$1$ point

Mrs$.$ Arnold is spending all her money income by buying bottles of soda and bags of pretzels in such amounts that the marginal utility of the last bottle is $60$ utils and the marginal utility of the last bag is $30$ utils. The prices of soda and pretzels are $$\mathrm{.}60$ per bottle and $$\mathrm{.}40$ per bag respectively. It can be concluded that:

Mrs$.$ Arnold should spend more on soda and less on pretzels

Mrs$.$ Arnold should spend more on pretzels and less on soda

the two commodities are substitute goods

Mrs$.$ Arnold is buying soda and pretzels in the utility$-$maximizing amounts

$2$

Multiple Choice

$1$ point

Marginal utility is the

sensitivity of consumer purchases of a good to changes in the price of that good

change in total utility obtained by consuming another unit of a good divided by the change in the price of that good

change in total utility obtained by consuming one more unit of a good

total utility associated with the consumption of a certain number of units of a good divided by the number of units consumed