Suppose That a Consumer Who Spends Her Budget on X

question 341

Multiple Choice

Suppose that a consumer who spends her budget on X and Y is initially at equilibrium. If the price of X increases, then the MU/P of X will

• A)decrease and the consumer will respond by buying more Y and less X.
• B)decrease and the consumer will respond by buying more X and less Y.
• C)increase and the consumer will respond by buying more Y and less X.
• D)increase and the consumer will respond by buying more X and less Y.

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Definitions:

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, used to assess a company's financial health.

Capital Invested

Capital deployed by a business to purchase or improve tangible assets like real estate, factories, or machinery.

Hygiene Factors

Factors related to job conditions that do not necessarily motivate employees if present, but can cause dissatisfaction if absent, such as company policies, administrative practices, or salary.

Working Conditions

The physical and psychological environment in which employees perform their job duties, including safety, hours, amenities, and atmosphere.