A Consumer Buys 12 Units of Entertainment,measured on the Horizontal

question 43

Multiple Choice

A consumer buys 12 units of entertainment,measured on the horizontal axis,and 84 units of "all other things." The consumer's income elasticity of demand is equal to 1 for both goods.If income increases by 10%,then the consumer's marginal rate of substitution at the utility-maximizing market bundle will:

• A) increase.
• B) decrease.
• C) be equal to 1.
• D) remain constant.
• E) There is insufficient information to answer the question.

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Definitions:

Sexual

Pertaining to the biological differences between males and females and activities related to physical attraction or intimate physical contact.

Pleasure-Giving Urge

Denotes an intrinsic motivation or desire to seek activities or stimuli that provide enjoyment, satisfaction, or pleasure.

Defence Mechanisms

Psychological strategies brought into play by individuals, groups, and even nations to cope with realities and to maintain self-image.

Sublimation

A defense mechanism in psychoanalytic theory where socially unacceptable impulses are transformed into socially acceptable actions or behaviors.