Question

Marsha just received an income tax refund of $1500. rather than using this money for some needed expenses, she decides to go out of town. she gets a hotel room with her friends, goes out to eat, spends the day at an amusement park, etc. she seems to be dominated by the:

Answer 1

With an increase in income, Kimberly's budget constraint shifts right, allowing her to spend more on concert tickets and overnight getaways. She will choose the combination of goods that maximizes her utility within her new budget. Her decision will be based on the marginal utility provided by each option and may differ from her original choices.

Step-by-step explanation:

When Kimberly's income increases from $1,500 to $2,000, allowing her to spend more on concert tickets and overnight getaways, her budget constraint shifts to the right. This change reflects an increase in purchasing power, meaning she can afford to buy more of both goods than before or a higher quantity of one good while maintaining the consumption of the other. Kimberly will consider the utility and marginal utility she receives from each option within her budget to find her new utility-maximizing point.

Kimberly's new choice will depend on her preferences and the marginal utility she derives from each additional unit of concert tickets or overnight getaways. If concert tickets provide a greater marginal utility, she might spend more on concerts with her additional income. Conversely, if overnight getaways offer a higher marginal utility or if there is a change in prices or her taste, she might prefer to allocate more towards that. Ultimately, her goal will be to reach the highest utility level possible within her new budget constraint.

The connection between tax refunds, like the one received by Marsha in the example, and budget constraints is that they both provide an influx of cash that can alter an individual's spending choices and utility-maximizing behavior.

Answer 2

She seems to be dominated by the "superego".Freud divided the personality into three sections, the id, ego and superego, all creating at various stages in our lives.The id is the piece of our mind which reacts specifically and instantly to the impulses and instincts. The identity of the infant kid is all id and just later does it build up an ego and super-ego.