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:

Reactants

Substances that undergo chemical changes in a reaction, transforming into products.

Equilibrium

A state in a chemical reaction where the rates of the forward reaction and reverse reaction are equal, leading to no net change in the concentration of reactants and products.

Concentration

A measure of the amount of a substance in a given volume of solution, often expressed in molarity (moles per liter).

Blood Plasma

The liquid component of blood that holds the blood cells in suspension; it is the blood's supernatant fluid, consisting mainly of water and dissolved proteins, glucose, clotting factors, mineral ions, hormones, and carbon dioxide.