Steven Consumes Only Two Goods, Both of Which Are Normal

question 173

Essay

Steven consumes only two goods, both of which are normal goods.He is currently maximizing his utility in consumption of both goods.Now assume the price of one of the goods falls.As he adjusts to this event:
A.the marginal utility of the good whose price changed will rise, and the marginal utility of the other good will fall.
B.the marginal utility of the good whose price changed will rise, and the marginal utility of the other good will also rise.
C.the marginal utility of the good whose price changed will fall, and the marginal utility of the other good will also fall.
D.the marginal utility of the good whose price changed will fall, and the marginal utility of the other good will rise.

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Definitions:

Memory Loss

Memory loss is the inability to recall or retain information; it can be temporary or permanent and can result from various causes, including disease, injury, or psychological trauma.

Personality Traits

Enduring characteristics that describe an individual's behavior, attitude, and emotions.

Experience of Stress

The physical or psychological response to internal or external pressures or demands.

Type A Personality

characterizes individuals who are competitive, highly organized, ambitious, impatient, highly aware of time management, and potentially aggressive.