If the Average Utility of Good a Is 15 and the Average

question 33

Multiple Choice

If the average utility of good A is 15 and the average utility of good B is 25, you should:

• A) consume more of good A and less of good B.
• B) consume more of good B and less of good A.
• C) keep consuming the current amounts of both good A and good B.
• D) realize that you don't have enough information to answer the question.

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Definitions:

Tax On Buyers

A burden placed on buyers in the form of a tax on the goods or services they purchase, decreasing their willingness to buy at higher prices.

Smart Watch Market

The sector within the technology industry concerned with the development, production, and sale of smartwatches, wearable devices that offer various computing and telecommunications capabilities.

Effective Price

The actual price that is paid for a product or service after accounting for discounts, subsidies, or taxes.

Effective Price

The final price after accounting for subsidies, taxes, or other incentives, effectively what the consumer pays or receives.