A State of Consumer Equilibrium for Two Goods Consumed Exists

question 50

Multiple Choice

A state of consumer equilibrium for two goods consumed exists when the:

• A) marginal utility of all goods is the same for the last dollar spent on each good.
• B) marginal utility per dollar's worth of two goods is the same for the last dollar spent on each good.
• C) price of two goods is the same for the last dollar spent on each good.
• D) marginal cost per dollar spent on two goods is the same.

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Definitions:

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often associated with increased activity in the nervous system.

Task Performance

Refers to the effectiveness and efficiency with which an individual completes a given task or series of tasks.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for action and stress responses, often referred to as the fight-or-flight response.

Fight-Or-Flight

A physiological reaction to perceived harmful events, attacks, or threats to survival, preparing the body to either confront or flee from the situation.