A Fear That Consumption of Ice Cream May Be Related

question 10

Multiple Choice

A fear that consumption of ice cream may be related to a life threatening disease spreads rapidly through France.The market result will be:

• A) the demand falls,price decreases and therefore French consumers buy more ice cream.
• B) the demand falls,price decreases and the quantity supplied therefore falls.
• C) a fall in demand followed by a fall in supply.
• D) the equilibrium quantity falls,but the price does not change.

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Definitions:

Utility Function

An equation that quantifies the happiness or satisfaction obtained by a consumer from consuming different bundles of goods and services.

Income

The amount of money received, typically on a regular basis, for work or through investments.

Nuts

Edible kernels from a variety of plants, often characterized by high fat and protein content.

Utility Function

A mathematical expression that represents how different combinations of goods or services create levels of happiness or satisfaction for an individual or entity.