A Consumer Buys Only Food and Clothing

question 80

Multiple Choice

A consumer buys only food and clothing. If the quantity of food bought increases while that of clothing remains the same, the marginal utility of food will:

• A) fall, but not as fast as the marginal utility of clothing falls.
• B) rise, but not as fast as the marginal utility of clothing rises.
• C) rise relative to the marginal utility of clothing.
• D) fall relative to the marginal utility of clothing.

Understand the strategic responses to variability of demand to maximize profitability.

Learn about the importance of profit allocation among supply chain members for successful collaboration.

Acknowledge the use of flexible strategies, including workforce and dual facilities, to manage capacity effectively.

Understand the impact of pricing decisions on overall profitability.