EQ #4 September 19, 2011 (4 pts) Quantity of Sandwiches 15 10 20 Quantity of Sandwiches 1. What caused the budget line to change? (a) The price of Chick-fil-A sandwiches rose. (b) The price of Subway sandwiches fell. (c) The expenditure (budget allotment) on Subway sandwiches and Chick-fil-A sandwiches rose. (d) The price of Subway sandwiches rose. (e) The price of Chick-fil-A sandwiches fell. 2. If the expenditure on Chick-fil-A Sandwiches and Subway sandwiches equals $60, what is the price of a Chick-fil-A sandwich?
3. The budget for this consumer is $48 3. The budget for this consumer is $48. List two true statements concerning this diagram: (a) (b) 4. The marginal utility of Dr. Pepper is the same as the marginal utility of Pepsi. Suppose the price of Dr. Pepper is $2/glass. In order for a rational consumer to buy more glasses of Pepsi than Dr. Pepper, the price of Pepsi must be: (a) equal to $2 (c) less than $2 (b) greater than $2 (d) can’t say; insufficient information