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How does the introduction of cognition into a consumer\'s choice between healthy

ID: 1091643 • Letter: H

Question

How does the introduction of cognition into a consumer's choice between healthy and unhealthy food affect marginal utility per dollar and the quantity of healthy and unhealthy food consumed? Assume utility is maximized. 46) _____________  
47) When an electronics company advertises on the local newspaper a 10% discount coupon , is this an example of price discrimination? Why or why not? 47) _____________  
48) Describe how if a price-fixing game is repeated over and over, the cooperative outcome might be attained. 48) _____________  
49) Explain what would happen to the equilibrium price and quantity of oranges if the supply of oranges increased while the demand for oranges decreased. 49) _____________  
50) Will a price ceiling always result in a reduction in efficiency? 50) _____________

Explanation / Answer

if health foods are subsidized, it is likely that people will buy more of them, which seems like a good thing. But it is also very possible that people may use the money they save on subsidized health foods to buy even more junk food

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