-In Figure 5-18, Point D for the Consumer

question 199

Multiple Choice

-In Figure 5-18, point D for the consumer

• A)will be chosen because total utility is larger there than at point C.
• B)would not be chosen because it is less desirable than point C.
• C)is unattainable, given the consumer's budget.
• D)has total utility equal to point C.

---

Definitions:

Stock Market

A public market for the trading of company shares and derivatives at an agreed price; it is a key indicator of economic health.

Price Ceiling

A price ceiling is a government-imposed limit on the maximum price that can be charged for a product or service, intended to protect consumers from excessive prices.

Consumer Durables

Goods that are not for immediate consumption and can be used repeatedly over a period of time, such as appliances, cars, and furniture.

Autonomous Consumption

Spending by consumers that is not influenced by changes in current income levels, typically covering basic necessities.