Suppose a Consumer Is at an Optimum

question 318

Multiple Choice

Suppose a consumer is at an optimum. What happens when the price of one good she has been consuming increases?

• A) The value of the marginal utility of the last unit consumed decreases.
• B) The value of the marginal utility of the last unit consumed increases.
• C) The marginal utility per dollar spent on the last unit consumed of that good increases by the same proportion as the price increases.
• D) The marginal utility per dollar spent on the last unit consumed of that good is now smaller than the marginal utility per dollar spent on other goods the person consumes.

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Definitions:

Retail Life Cycle

The progression of stages a retail business goes through from introduction to growth, maturity, and decline.

Growth And Decline

Refers to the phases of the business cycle or product life cycle where an entity or product experiences expansion in business activity or market share, and contraction or reduction respectively.

Retail Outlets

Physical or online stores where goods are sold directly to consumers.

Automated Stores

Retail outlets that operate automatically without the need for human staff, relying on technology like vending machines and kiosks for customer transactions.