Question: -- Not Assignment, checking previous exam question that I got back to see if marked correctly -- Supposed that the price of gin and tonic
-- Not Assignment, checking previous exam question that I got back to see if marked correctly --
Supposed that the price of gin and tonic is 1$ and the price of steak is $0.25.
Supposed also that Bob is willing to trade two gin and tonic (G&T) for an extra steak.
Which one of the following statements is accurate?
A) Bob maximizes and should not change anything.
B) Bob is not maximizing and should buy more steak and fewer G&T
C) Bob is not maximizing and should buy more G&T and fewer steak
D) Bob is missing information to make an enlightened decision
Question on a previous exam that I got wrong. Looking for someone to explain which answer it is and why
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