Consider a Market with a Demand Curve Given by P

question 8

Multiple Choice

Consider a market with a demand curve given by P = 150 - q and a supply curve of P = 2q.Solving for q and P yields

• A)q = 60, P = 30
• B)q= 120, P = 60
• C)q = 90, P = 60
• D)q = 40, P = 80
• E)q = 50, P = 100

---

Definitions:

Utility Maximizing

The economic principle where consumers allocate their resources to maximize their overall satisfaction or utility.

Consumption Mix

Refers to the combination of goods and services consumed by an individual or within an economy.

Theory of Consumer Behavior

An economic framework describing how individuals make decisions to allocate their resources on consumption items, based on their preferences, income, and the prices of goods and services.

Diminishing Marginal Utility

The principle that as a consumer increases consumption of a good or service, the incremental satisfaction gained from consuming each additional unit decreases.