Suppose William Can Choose Between the Consumption of Two Goods

question 91

Multiple Choice

Suppose William can choose between the consumption of two goods. If we observe that William's budget constraint has moved inward, then we know for certain that

• A)his income must have decreased.
• B)he will be indifferent between the two goods.
• C)the price of one or both of the goods must have increased.
• D)his utility will decrease.

---

Definitions:

Mental Disorder

A condition that affects a person's thinking, feeling, behavior, or mood, significantly interfering with daily life.

Fit To Stand Trial

The legal determination that a defendant has the mental competency to understand the charges against them and participate in their defense during a court trial.

Cognitive Capacity

The total amount of information the brain is capable of retaining and processing.

IQ

Short for Intelligence Quotient, a measure of a person's intellectual abilities in relation to their age group.