Consider a Consumer Who Spends All Income on Only Two

question 40

Multiple Choice

Consider a consumer who spends all income on only two goods: bread and wine. An extra loaf of bread would give the consumer 10 extra util, while an extra bottle of wine would give the consumer 60 extra utils. Bread costs 50¢ per loaf, and wine costs $6 per bottle. In this situation, the consumer:

• A) could increase utility by buying more bread and less wine.
• B) could increase utility by purchasing more wine and less bread.
• C) has maximized utility and attained consumer equilibrium.
• D) is violating the law of diminishing marginal utility.

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Definitions:

Innovative Family Structures

Families that diverge from traditional norms in composition, roles, or dynamics, often embracing new forms of kinship or parenting arrangements.

Traditional Family

A social unit consisting typically of parents and their children, where the parents are usually married and follow conventional roles.

Domestic Abuse

Patterns of abusive behavior in any relationship that are used by one partner to gain or maintain control over another intimate partner, encompassing physical, sexual, emotional, economic, or psychological actions or threats.

Interactional Work

Involves the efforts people make in social situations to manage the impressions others have of them, often to maintain social norms or achieve personal goals.