A Consumer Was at an Optimum

question 254

Multiple Choice

A consumer was at an optimum. She then discovers that the marginal utility per dollar spent on food is more than the marginal utility per dollar spent on gasoline. She knows then that

• A) the price of gasoline must have decreased.
• B) the price of food must have increased.
• C) the price of gasoline must have increased or the price of food must have decreased.
• D) the price of gasoline must have decreased or the price of food must have increased.

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Definitions:

Vocal Cords

The folds of mucous membrane in the larynx that vibrate to produce sound and speech.

Spasmodic

Relating to or affected by spasms, sudden involuntary muscle contractions that can be painful or uncomfortable.

Posterior Thigh

Refers to the back part of the thigh, encompassing muscles such as the hamstrings.

Biceps Femoris

A muscle of the posterior thigh that is part of the hamstrings, involved in knee flexion and thigh extension.