Question

Consider the example of an individual in a grocery store examining two cans of peaches, Alpha Peaches and Beta Peaches. If Alpha is thought to provide 10 units of pleasure per dollar and Beta is thought to provide 8 units per dollar, then Alpha should be chosen.

a) true
b) false

Answer 1

True.

Step-by-step explanation:

True, The given situation is true because the pleasure (utility) provided by Alpha is greater than the pleasure (utility) provided by the Beta. Therefore, a rational person will buy only that commodity which has a higher utility. Here, we can see the Alpha provides 10 units of utility or pleasure per dollar while Beta provides 8 units of utility or pleasure per dollars. So, only Alpha will be chosen.