When a Consumer Shifts Purchases from Product X to Product

question 10

Multiple Choice

When a consumer shifts purchases from product X to product Y, the marginal utility of

• A)X falls and the marginal utility of Y rises.
• B)X rises and the marginal utility of Y falls.
• C)both X and Y rises.
• D)both X and Y falls.

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Definitions:

Expenses

The outflow of money or other resources incurred in the process of generating revenue.

Account

A record used to keep track of and summarize financial transactions within a specific category, such as sales, expenses, or assets.

Accounting Record

Documentation and entries that capture financial transactions and positions within an entity.

Specific Item

Refers to a unique or distinctly identified item within an inventory or accounting context.