Refer to the Graph

question 286

Multiple Choice

Refer to the graph. As the consumer equilibrium point shifts from point a to point b,

• A)the consumer's purchase of good 2 decreases even though its price stays constant.
• B)the slope of the budget line decreases because the price of good 1 increased.
• C)the marginal utility of good 1 increases and the marginal utility of good 2 decreases.
• D)the consumer's total utility decreases.

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Definitions:

Gallery

A room or building for the display or sale of artworks, but can also refer to a collection or exhibition of art.

Agency Costs

Expenses incurred due to conflicts of interest between shareholders and management, typically including monitoring, contracting, and opportunity costs.

Spot Checks

Random inspections or audits conducted without prior notice to ensure compliance or quality.

Employee Work

The tasks and duties performed by an individual employed by an organization.