A Consumer Maximizes Satisfaction at the Point Where His Valuation

question 88

Multiple Choice

A consumer maximizes satisfaction at the point where his valuation of good X, measured as the amount of good Y he would willingly give up to obtain an additional unit of X, equals:

• A) the magnitude of the slope of the indifference curve through that point.
• B) one over the magnitude of the slope of the indifference curve through that point.
• C) P_X/P_Y
• D) P_Y/P_X

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Definitions:

Bending Light Rays

The refraction of light that occurs when its speed changes as it passes from one medium to another, causing the light to change direction.

Fatigue

A state of physical or mental weariness resulting from exertion, reducing efficiency and capacity for work.

Action Potentials

Rapid and temporary electrical impulses that travel across the membrane of nerve cells, facilitating neuronal communication.

Synapse

The junction between two neurons or between a neuron and muscle fiber, where electrical or chemical signals are transmitted.