If Utility Is Not Maximized, Then

question 87

Multiple Choice

If utility is not maximized, then:

• A) some change in consumption will increase satisfaction.
• B) no change in consumption will increase utility.
• C) only a change in income will increase utility.
• D) only a change in price will increase utility.

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Definitions:

Mediator Variable

A variable that explains the mechanism through which an independent variable influences a dependent variable in a causal relationship.

Predictor Variable

A variable, often designated as the independent variable, that is used to make predictions about (or is assumed to cause) changes in another variable.

Criterion Variable

The variable that is predicted or explained in a study, often considered the outcome or dependent variable.

Latent Class Analysis

A statistical method used to identify subgroups within a population that share certain characteristics, without these groups being previously known.