Assume MU C and MU D Represent the Marginal Utility

question 119

Multiple Choice

Assume MU c and MU d represent the marginal utility that a consumer gets from products C and D, the respective prices of which are P_c and P_d. The consumer will increase his total utility from a specific money outlay by spending more on C and less on D if initially

• A)MU d<MU c.
• B)MU cP c<MU dP c.
• C)MU cP c>MU dP d.
• D)MU d>MU c.

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that becomes associated with an unconditioned stimulus through conditioning.

Unconditioned Stimulus

A stimulus that naturally triggers a reflexive response without any prior learning.

Salivation

The secretion of saliva, often triggered reflexively by the anticipation or presence of food as a part of the digestive process.

Blood Sugar

The concentration of glucose in the blood, crucial for energy provision in the body.