Exhibit 6-22 -If a Consumer Moves from Point a to Point B

question 30

Multiple Choice

Exhibit 6-22
-If a consumer moves from point a to point b on the indifference curve shown in Exhibit 6-22,

• A) the consumer's total utility from food and books remains unchanged
• B) the consumer's total utility from food and books falls
• C) the consumer becomes more willing to give up additional units of books in order to consume one more unit of food
• D) the consumer's willingness to give up additional units of books in order to consume more units of food does not change
• E) the consumer's total utility from food and books rises

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Definitions:

Efficiency Losses

The reduction in economic efficiency due to imbalances or distortions in the market, often manifesting as excess or insufficient production and consumption.

Output Level

The quantity of goods or services produced by a firm or economy in a given period.

External Benefits

Positive effects of a product or service that are enjoyed by people other than those who directly use or consume the product or service.

Private Benefits

The direct advantages or gains accruing to an individual or organization from their economic actions, excluding wider societal impacts.