As a Consumer Moves Down One of Her Indifference Curves

question 142

Multiple Choice

As a consumer moves down one of her indifference curves, her
Satisfaction:

• A)falls.
• B)rises.
• C)remains unchanged.
• D)first falls, then levels out.

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Definitions:

Present Value

The value of a future amount of money in today's terms, discounted at a particular rate.

Cost Of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds.

Lump Sum

A one-time payment made for a particular purpose, rather than recurring payments over time.