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Sam Always Tries to Maximize His Utility in His Consumption

question 100

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Sam always tries to maximize his utility in his consumption of popcorn and soft drinks.Both of these goods are subject to diminishing marginal utility.Suppose the prices of these goods,along with Sam's budget (and spending) for these items,stay the same,but Sam decides to decrease his consumption of popcorn.Holding everything else constant,this means that Sam must _____ his consumption of soft drinks,and his marginal utility per dollar spent on popcorn will be _____ than it used to be.


Definitions:

Stable Factors

Characteristics or elements that remain constant over time in a given context or system.

External

Pertaining to or situated on the outside of something; relating to the outer environment or surroundings.

Unstable

Lacking in stability, predictability, or consistency, often leading to unpredicted changes or outcomes.

Specific Factors

Elements or conditions that are distinct and contribute to a particular outcome or situation.

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