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A Consumer Is Attempting to Maximize Utility in Her Consumption

question 64

Multiple Choice

A consumer is attempting to maximize utility in her consumption of goods A and B.If her income and the price of good A do not change but the marginal utility of good B is constant and the price of good B decreases,this will _____ utility per dollar spent on good B.


Definitions:

Burritos

A type of Mexican food consisting of a wheat flour tortilla wrapped or folded into a cylindrical shape to fully enclose the filling.

Marginal Revenue

The additional income earned from selling one more unit of a good or service; it's the change in total revenue divided by the change in the quantity sold.

Burritos

A type of Mexican and Tex-Mex cuisine that consists of a wheat flour tortilla wrapped or folded into a cylindrical shape to completely enclose a filling.

Marginal Revenue

The additional income received from selling one more unit of a good or service; it's a critical concept in determining optimal output level.

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