Suppose a Consumer Is Purchasing Coke (C)and Pretzels (P)in Quantities

question 135

Multiple Choice

Suppose a consumer is purchasing Coke (c) and pretzels (p) in quantities such that he is achieving consumer equilibrium. Then the price of Coke increases. Which of the following will be true?

• A)MU_C\P_C = MU_P\P_P
• B)MU_C\P_C > MU_P\P_P
• C)MU_C\P_C
• D)We cannot say for certain what will happen to the MU_C\P_C relative to the MU_P\P_P.

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Definitions:

Regulatory Flexibility Act

A U.S. law that aims to minimize the impact of regulations on small businesses and other small entities by requiring federal agencies to consider less burdensome alternatives.

Small Businesses

Enterprises characterized by a small number of employees, limited revenue, and size within their industry.

Less Burdensome Alternatives

Options or solutions that demand less effort, costs, or restrictions while achieving a similar outcome.

Occupational Safety

The discipline concerned with designing work environments and practices to prevent worker injury and illness.