Vera Gives Will a $500 Check as Payment for a Debt

question 53

Multiple Choice

Vera gives Will a $500 check as payment for a debt. Will crudely increases the amount of the check to $5,000 and deposits the check in his First Bank account. Vera is liable for the payment of $5,000 to​

• A) ​no one.
• B) ​Will and First Bank.
• C) ​First Bank only.
• D) ​Will only.

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Definitions:

Consumer's Income

The total amount of income earned by consumers, determining their purchasing power and ability to afford goods and services.

Utility Maximization

The process by which consumers adjust their consumption to get the highest level of satisfaction from their available resources.

MU/P Ratio

The ratio of marginal utility (the additional satisfaction from consuming one more unit of a good) to its price, often used in consumer choice theory to maximize utility.

MU/P Ratio

A term not widely recognized or may be misinterpreted without context; likely refers to the marginal utility to price ratio, assessing the consumer satisfaction per unit of currency spent.