Figure 6-1 A Plot of the Continuous Spectra of Five Different Stars

question 76

Multiple Choice

Figure 6-1
A plot of the continuous spectra of five different stars is shown in Figure 6-1. Based on these spectra, which of the stars is the hottest?

• A) Star A
• B) Star B
• C) Star C
• D) Star D
• E) Star E

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Definitions:

Utils

A hypothetical unit of measure used to quantify the satisfaction or utility that a consumer derives from consuming a good or service.

Marginal Utility per Dollar

The additional satisfaction or utility gained from consuming an additional unit of a good or service per unit of currency spent.

Utility-maximizing Consumer

A consumer who aims to get the highest level of satisfaction possible from their purchases, given their budget constraints.

Income Effect

The income effect describes how changes in consumers' income impact their purchasing choices, typically affecting the quantity of goods consumed.