If Mr Smith Thinks the Last Dollar Spent on Shirts Yields

question 111

Multiple Choice

If Mr. Smith thinks the last dollar spent on shirts yields more satisfaction than the last dollar spent on cola, and Smith is a utility-maximizing consumer, he should

• A) decrease his spending on cola.
• B) decrease his spending on cola and increase his spending on shirts.
• C) increase his spending on shirts.
• D) increase his spending on cola and decrease his spending on shirts.

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Definitions:

Shipment Contract

A type of sales contract where the seller is required to send the goods to the buyer, but the risk of loss passes when the goods are handed to the carrier.

Risk of Loss

A legal term referring to the responsibility for damage, destruction, or loss of goods, especially in the context of the sale or transport of those goods.

Hijacked

When something is hijacked, it is taken control of forcefully or unlawfully, often referring to vehicles like planes or trucks, but also can describe situations where control is usurped illegally or unethically.

CISG

The United Nations Convention on Contracts for the International Sale of Goods is a treaty designed to provide a standardized framework for international trade.