Sheri Is Currently Purchasing 10 Units of a Normal Good

question 21

Multiple Choice

Sheri is currently purchasing 10 units of a normal good and her indifference curves exhibit diminishing marginal rate of substitution.Suppose there is a decrease in the market price of this good.Then

• A) both her utility and her consumer surplus will increase.
• B) her consumer surplus will increase, but her utility will remain the same.
• C) her utility will increase, but her consumer surplus will remain the same.
• D) her consumer surplus will increase, but the change in her utility is unknown without more information.

Recognize the impact of the Flynn effect on intelligence testing.

Analyze differences in brain physiology and predict implications for information processing capacity.

Compare and contrast various theories of intelligence, including Spearman, Gardner, and Sternberg.

Identify biases and validity issues in intelligence testing.

---

Definitions:

Nash Equilibrium

A concept in game theory where each player's strategy is optimal, given the strategies of all other players in the game.

Zero Marginal Cost

The cost incurred by producing one additional unit of a product or service when this cost is effectively zero, often due to technological advances.

Duopolists

Firms or entities that are two in number in a market, dominating the market and setting prices either collaboratively or competitively.

Monopolist

An entity that is the sole provider of a particular product or service, controlling the entire market.