When Bonnie Increases the Consumption of Good a and Decrease

question 281

Multiple Choice

When Bonnie increases the consumption of Good A and decrease the consumption of Good B, her marginal utility of

• A) A falls and the marginal utility of B will increase.
• B) both A and B will decrease.
• C) A increases and the marginal utility of B will fall.
• D) both A and B will increase.

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Definitions:

Income

Funds accumulated over time from work or investing efforts, usually received systematically.

Utility Function

A representation in economics of how a consumer ranks different bundles of goods according to their level of satisfaction or happiness.

Tape Recorders

Devices used for recording audio onto magnetic tape and playing audio from tape.

Tapes

This term may refer to magnetic data storage tapes for information or sound recording but lacks specificity for a clear economic context. NO.