A Consumer Is at an Optimum When the Price of One

question 144

Multiple Choice

A consumer is at an optimum when the price of one good she has been consuming decreases. As a result

• A) the value of the marginal utility of the last unit consumed has increased.
• B) the value of the marginal utility of the last unit consumed has decreased.
• C) the price of the other good must decrease too.
• D) the marginal utility of the last dollar spent on this good is now greater than the marginal utility of the last dollar spent on other goods.

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Definitions:

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and others, and understand that others have beliefs and perspectives different from one's own.

Mental States

Conditions of mind or consciousness, including thoughts, feelings, perceptions, moods, and emotional states.

Different Sense

The ability to interpret and distinguish diverse types of sensory information, such as visual, auditory, and tactile stimuli.

Impulsive

Impulsive pertains to actions or behaviors initiated without forethought or consideration of the consequences.