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Question from microeconomics course of MIT

 
 
lena68
 
Reply Fri 7 Oct, 2016 06:17 am
Hello everyone!
I took online-course on edX, and had the following question (but I cfn;t understand, why 6 answer is incorrect):

The Pakistani-American Association wants to give Ismail a small prize for an essay he wrote. They are trying to decide between awarding him a $200 voucher for school supplies, and awarding him $200 cash.
Suppose Ismail spends $300 on school supplies and $900 on other goods this semester.
How will Ismail's consumption bundle differ if he is given a $200 voucher redeemable only for school supplies, relative to being given $200 cash?

1.Ismail will consume more school supplies and more other goods
2.Ismail will consume more school supplies and less other goods
3.Ismail will consume the same amount of school supplies and more other goods
4.Ismail will consume the same amount of school supplies and the same amount of other goods
5.The answer is ambiguous
6.The answer is unambiguous, but is not listed above
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