Refer to the Following Table A) Is Maximizing Satisfaction for the Given Expenditure

question 103

Multiple Choice

Refer to the following table. At this level of consumption of goods A and B, the consumer: $$\begin{array} { | l | c | c | } \hline & \text { Gand A } & \text { Gand B } \\\hline \text { Marpinal utility } & 100 & 500 \\\hline \text { Price } & \mathbf { \$ 2 0 } & \$ 50 \\\hline\end{array}$$

• A) is maximizing satisfaction for the given expenditure.
• B) could increase total satisfaction for a given expenditure by increasing the consumption of A and decreasing that of B.
• C) could increase total satisfaction for a given expenditure by increasing the consumption of B and decreasing that of A.
• D) should consume only A.

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Definitions:

Business Factors

include the various elements that influence the operation and success of a company, such as market trends, competition, and internal capabilities.

Number

A mathematical object used to count, measure, and label; fundamental in mathematics.

Quality

The standard of something as measured against other things of a similar kind; the degree of excellence of something.

Creativity

The use of imagination or original ideas to create something; inventiveness.