Suppose Mario Is in a Consumer Equilibrium

question 171

Multiple Choice

Suppose Mario is in a consumer equilibrium. He then discovers that his marginal utility per dollar spent on energy drinks is greater than his marginal utility per dollar spent on ice cream. He knows then that the price of

• A) energy drinks must have increased.
• B) energy drinks must have decreased or the price of ice cream must have increased.
• C) ice cream must have decreased.
• D) the price of energy drinks must have increased or the price of ice cream must have decreased.

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Definitions:

Anaerobic Conditions

Environments that lack oxygen, under which certain biological processes occur, such as the fermentation in yeasts.

ATP Production

The process by which cells generate ATP (adenosine triphosphate), a molecule that provides energy for many cellular processes.

Aerobic Cellular Respiration

The process in which cells use oxygen to break down glucose and generate ATP, water, and carbon dioxide as byproducts.

Glycolysis

The metabolic pathway that breaks down glucose into pyruvate, producing ATP and NADH, happening in the cell's cytoplasm.