Steven Consumes Only Two Goods, Both of Which Are Normal

question 459

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 increases.As he adjusts to this event:
A.the marginal utility of the good whose price did not change will rise, and the marginal utility of the other good will fall.
B.the marginal utility of the good whose price did not change will fall, and the marginal utility of the other good will rise.
C.the marginal utility of the good whose price did not change will rise, and the marginal utility of the other good will also rise.
D.the marginal utility of the good whose price did not change will fall, and the marginal utility of the other good will also fall.

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Definitions:

Situational Factors

External factors or circumstances that can affect an individual's behavior or the outcome of a decision or action in a specific context.

Von Hindenburg

Refers to Paul von Hindenburg, a German military officer and statesman who served as the President of Germany from 1925 until his death in 1934.

Leadership Ability

The capacity to guide, influence, and inspire a group towards achieving its goals, demonstrating vision, and making impactful decisions.

Primary Qualities

The fundamental attributes that an object possesses independently of any observer, such as solidity, extension, motion, and number.