Emma Consumes Only Tacos and Pizza

question 260

Multiple Choice

Emma consumes only tacos and pizza. They are substitute goods for her. The price of a taco falls. Emma will buy ________ tacos and her marginal utility from the last slice of pizza she eats ________.

• A) more; does not change
• B) more; decreases
• C) the same quantity; does not change
• D) less; increases

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Definitions:

Exchange Rate

The worth of one currency in terms of another for conversion purposes, showing the amount of one currency that can be swapped for a different one.

Canadian Dollar

The official currency of Canada, often symbolized as CAD, which fluctuates in value on the foreign exchange market.

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The Euro is the official currency of 19 out of the 27 European Union countries, known collectively as the Eurozone, and acts as one of the world’s major currencies.