Suppose a Consumer Is Purchasing Coke and Pretzels in Quantities

question 116

Multiple Choice

Suppose a consumer is purchasing Coke and pretzels in quantities such that she is achieving consumer equilibrium. Then the price of Coke decreases. The consumer will likely __________ her consumption of Coke and the marginal utility of Coke will __________ while the total utility from Coke will __________.

• A)increase; increase; increase
• B)increase; decrease; decrease
• C)increase; decrease; increase
• D)decrease; increase; increase
• E)decrease; decrease; decrease

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Definitions:

Profit Center

A distinct segment of a business that is responsible for generating its own revenue and profit, enabling better tracking of financial performance.

Value-Adding Activity

Any action or process that increases the worth of a product or service to customers, making it more desirable or enhancing its quality.