Michael Consumes Only Steak and Lobster

question 115

Multiple Choice

Michael consumes only steak and lobster. Suppose that the price of steak rises. After Michael is back at equilibrium, compared to the situation when steak was cheaper, the marginal utility from the last steak will

• A) have increased.
• B) not have changed.
• C) have decreased.
• D) not be comparable with the marginal utility before the price hike.

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Definitions:

Inexhaustible Resources

Natural resources that are unlimited in supply and cannot be depleted, such as solar and wind energy.

Colonists

Individuals or groups who settle in a new territory but remain subjects or citizens of their country of origin, often involved in the historical context of expansion and empire-building.

Continent

One of the very large landmasses on the earth's surface, typically separated by oceans.

Land Ethics

A philosophy that stresses the interdependence between humans and the land, promoting the responsible use and conservation of natural resources.