Consumers with a Fixed Budget Will Make Purchases Based On

question 17

Multiple Choice

Consumers with a fixed budget will make purchases based on:

• A) the budget constraint.
• B) their willingness to buy.
• C) the amount of market supply.
• D) the highest marginal utility per dollar.

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Definitions:

Scrap Value

An asset's anticipated resale value once it has surpassed its period of utility.

Straight-Line Method

A method of calculating depreciation of an asset by evenly distributing its cost over the useful life of the asset.

Scrap Value

The estimated resale value of an asset at the end of its useful life, typically considered as salvage value.

Double-Declining-Balance

A method of accelerated depreciation which doubles the regular depreciation rate, reducing the value of an asset more quickly in its early years.