If a Consumer Is at an Optimum, Consuming X and Y

question 28

Multiple Choice

If a consumer is at an optimum, consuming X and Y, and the price of X increases, then to get to a new equilibrium the consumer must

• A) purchase less X.
• B) purchase less Y.
• C) purchase more X.
• D) purchase more of both X and Y.

---

Definitions:

Sale

The exchange of goods or services for money, constituting a fundamental economic activity.

Excess Cash

Indicates surplus cash that a company holds beyond what is required for its day-to-day operations.

Stock Split

A business operation where a corporation segments its current shares into several shares, with the goal of increasing share liquidity.

Common Stock

A type of equity security that represents ownership in a corporation, providing voting rights and a share in the company's profits.