To Derive a Demand Curve Using Utility Analysis

question 11

Multiple Choice

To derive a demand curve using utility analysis,

• A)change a consumer's marginal utilities and note the effect of demand curve changes on market prices
• B)change a consumer's marginal utilities and note the effect of supply curve changes on market prices
• C)change a consumer's marginal utilities and note the effect of supply and demand curve changes on market prices
• D)note how the consumer's utility-maximizing consumption bundle changes in response to price changes
• E)note how the consumer's utility-maximizing consumption bundle changes in response to demand-curve shifts

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Definitions:

EPS

Earnings Per Share - a company's profit divided by its number of outstanding shares, indicating the profitability on a per-share basis.

Debt

Money that is owed or due to be paid to creditors.

Capital Structure

The mix of various types of debt and equity that a company uses to finance its operations.

Tax Rate

The proportion of one's earnings or company profits that is required to be paid as tax.