A Utility-Maximizing Consumer Will

question 12

Multiple Choice

A utility-maximizing consumer will

• A)consume at a point on her budget line
• B)consume each good until its marginal utility is zero
• C)adjust her consumption pattern so that the marginal utilities of all goods are equal
• D)consume more of a good only if its price rises
• E)stop consuming any good whose price rises

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Definitions:

Domestic Demand

The total demand for goods and services within a country's borders.

World Price

The international market price of a good or service, affected by global supply and demand.

World Price

The global market price of a good or service, determined by worldwide demand and supply.

Import

Refers to the acquisition of goods or services from a foreign country for domestic use.