Lucy Buys Only Magazines and CDs

question 87

Multiple Choice

Lucy buys only magazines and CDs.Both are normal goods.Lucy's income decreases,but the prices of magazines and CDs do not change.Marginal utility theory predicts that

• A)Lucy buys more magazines and more CDs.
• B)Lucy buys fewer magazines and fewer CDs.
• C)Lucy's demand curve for magazines shifts leftward.
• D)Lucy's demand curve for CDs shifts leftward.
• E)B,C,and D are correct.

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Definitions:

Performance Measure

Metrics or benchmarks used to gauge an individual's, department's, or organization's performance against expected results or goals.

Profit Margin

A financial ratio used to assess a company's profitability by dividing net income by revenue, demonstrating the percentage of revenue that constitutes profit.

Income From Operations

The income earned from a company's everyday core business operations, excluding income from investments and other non-operational sources.

Invested Assets

Assets that are purchased or acquired for long-term income potential or to benefit the business operations.