Use the Following to Answer Question

question 39

Multiple Choice

Use the following to answer question:
-(Figure: Indifference Curves and Consumption Bundles) Use Figure Indifference Curves and Consumption Bundles.In the figure,the initial optimum is at a.The price of hot dogs now increases.The change in hot dog consumption due to the substitution effect is:

• A)H₃ to H_2.
• B)H₃ to H_1.
• C)H₂ to H_1.
• D)H₁ to H_2.

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Definitions:

Capital Intensity Ratio

A financial metric that estimates the amount of investment in capital assets a company needs relative to its labor force to generate revenue.

Maximum Capacity

The highest level of output that a company can sustain to produce in a given period under normal conditions.

Proportional

Proportional refers to a relationship or distribution where quantities maintain the same relative size or ratio to each other, often applied in financial contexts like taxation or distribution of profits.

Dividend Payout Ratio

A financial metric that shows the percentage of a company's earnings paid to shareholders in the form of dividends.