Assume Dawn's Budget Constraint Is Represented in the Graph

question 136

Multiple Choice

Assume Dawn's budget constraint is represented in the graph. If Dawn's income increases and she spends all her income on these two goods, then Dawn's total utility from consuming these two goods will likely:

• A)increase, because she can afford more of both goods now.
• B)decrease, because the marginal utility of consuming additional items decreases.
• C)decrease, because she would be buying more of these goods than desired.
• D)decrease, because the marginal utility of consuming additional items increases.

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Definitions:

Adolescence

A developmental phase following childhood, typically characterized by physical, psychological, and social changes leading to increased independence.

Focusing Attention

The mental process of concentrating on one element, task, or thought while ignoring other distractions or stimuli.

Middle Childhood

a developmental stage that includes children from approximately 6 to 12 years of age, characterized by significant growth in social, cognitive, and physical areas.

Infancy

The developmental period that extends from birth to about 18 to 24 months.