Ron Starts Out in Consumer Equilibrium,consuming Two Goods,X and Y

question 94

Multiple Choice

Ron starts out in consumer equilibrium,consuming two goods,X and Y.The price of Y rises.Immediately after the rise in price

• A)MU_X/P_X > MU_Y/P_Y,and then Ron increases his consumption of Y.
• B)MU_X/P_X > MU_Y/P_Y,and then Ron decreases his consumption of Y.
• C)MU_X/P_X < MU_Y/P_Y,and then Ron increases his consumption of Y.
• D)MU_X/P_X < MU_Y/P_Y,and then Ron decreases his consumption of Y.
• E)MU_X/P_X > MU_Y/P_Y,and then Ron increases his consumption of X and Y.

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Definitions:

Coercive Power

Coercive power is the capacity to punish or withhold positive outcomes as a way of influencing other people.

Positive Outcomes

Favorable or beneficial results achieved through a process, action, or intervention.

Special Assignments

Tasks given to employees outside of their usual responsibilities, often to harness their specific skills or to provide them with new challenges.

Political Behaviour

Activities within organizations that involve power and influence tactics to achieve personal or organizational objectives.