Lucy Buys Only Magazines and CDs

question 87

Multiple Choice

Lucy buys only magazines and CDs.Both are normal goods.Lucy's income decreases,but the prices of magazines and CDs do not change.Marginal utility theory predicts that

• A)Lucy buys more magazines and more CDs.
• B)Lucy buys fewer magazines and fewer CDs.
• C)Lucy's demand curve for magazines shifts leftward.
• D)Lucy's demand curve for CDs shifts leftward.
• E)B,C,and D are correct.

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Definitions:

Consequences

The outcomes or effects that result from a specific action, decision, or event.

Ethical Situations

Scenarios or dilemmas that involve making decisions based on moral principles and values.

Business Settings

The environment or context within which commercial activities are conducted, including physical locations and virtual platforms.

Mature Environments

Environments or sectors that have reached a state of equilibrium with established players, slow innovation, and stable customer demand.