Assume That a Consumer Purchases a Combination of Products Y

question 259

Multiple Choice

Assume that a consumer purchases a combination of products Y and Z and that the MU y/ Pᵧ = 22 and MU z/ P_z = 25. To maximize utility, without spending more money, the consumer should

• A)purchase less of Z and more of Y.
• B)purchase more of Z and less of Y.
• C)purchase more of both Y and Z.
• D)make no change in the quantities Y and Z.

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Definitions:

Mere Exposure Effect

An occurrence in psychology where individuals often favor items or concepts just because they are accustomed to them.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, with the association formed between behavior and its consequences.

Praises

Expressions of approval or admiration towards someone or something, often used as a form of encouragement or recognition.

Denies Dessert

The choice to refuse or not partake in a sweet course following a meal, often for health, dietary, or personal reasons.