Problem
Five Signs You Have Too Much Money When a bottle of water costs $38, it's hard not to agree that bottled water is a fool's drink. The drink of choice among image-conscious status seekers and high-end tee-totallers in L.A. is Bling H 2 O. It's not the water that accounts for the cost of the $38, but the "limited edition" bottle decked out in Swarovski crystals.
a. Assuming that the price of a bottle of Bling H2O is $38 in all the major U.S. cities, what might its popularity in Los Angeles reveal about consumers' incomes or preferences in Los Angeles relative to other major U.S. cities?
b. Why might the marginal utility from a bottle of Bling H2O decrease more rapidly than the marginal utility from ordinary bottled water?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.