Specialty Auto Parts Company uses the indirect method to prepare its statement of cash flows. Refer to the following information
1 answer:
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Answer:
1. buy more salads and fewer sandwiches.
Explanation:
As we know that
Therefore
Now the price ratio is
It is probable if you rising marginal utility numbering and reduce denominator marginal utility. If you reduce their intake, the MU of a food item will raise. Such decrease in the composition would make the quantity of the food element scarce. And its usefulness goes up. The Numerator here is sandwich MU. And to increase their marginal utility, you can reduce sandwich consumption.
Salad should need just the reverse. You raise salad intake so the MU reduces. Therefore you have to eat more salads and less chicken sandwiches to maximise the utility. So, salad is replaced by sandwiches for chicken.