A Person Is in Consumer Equilibrium, and Then the Price

question 36

Multiple Choice

A person is in consumer equilibrium, and then the price rises for one of the goods she purchases. If she wants to restore herself to consumer equilibrium, she will (most likely)

• A)buy less of the good whose price has risen and more of the relatively lower priced goods.
• B)try to increase the marginal utility she receives from the good whose price has risen.
• C)try to decrease the marginal utility she receives from the goods whose prices did not rise.
• D)buy more of both the good whose price has risen and of the goods whose prices have not risen.
• E)There is not enough information to answer the question.

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Definitions:

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Economic Theory

A structured explanation or framework about how economies function, including principles and models to understand economic behavior and markets.

Abstract Ideas

Concepts or notions that are not tangible or concrete, often involving complex thinking processes and creativity.

Real-World Situation

Circumstances or events that occur in the actual world, outside of controlled or theoretical environments.