A Consumer Choosing Between Apples and Oranges Is at Her

question 45

Multiple Choice

A consumer choosing between apples and oranges is at her best affordable point.Then the price of apples decreases.If both apples and oranges are normal goods,which one of the following statements is true about her new best affordable point?

• A)She will consume more apples and more oranges.
• B)She will consume more apples and fewer oranges.
• C)She will consume fewer apples and more oranges.
• D)She will consume fewer apples and fewer oranges.
• E)She will consume more apples,and we do not know whether she will consume more or less oranges.

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Definitions:

Account

A record that summarizes all transactions related to a particular item or entity, used in financial accounting to track financial changes.

Dividends

Payments made by a corporation to its shareholders out of its profits.

Expenses

Costs incurred in the operation of a business to generate revenue.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company’s balance sheet.