If the Price of a Good Purchased by a Utility

question 47

Multiple Choice

If the price of a good purchased by a utility maximizing consumer goes down, all other things remain the same, and the consumer's income is adjusted so that he can just barely attain his previous level of satisfaction, and if the consumer had indifference curves of the usual shape it will be found that

• A)more of the good will be purchased than before.
• B)less of the good will be purchased than before.
• C)the same amount of the good will be purchased as before.
• D)the consumer will stop purchasing the good at all.

---

Definitions:

Total Current Liabilities

The sum of all debts and financial obligations a company is expected to pay within one fiscal year.

Inventory Turnover Rate

A measure of how quickly a company sells and replaces its stock of goods within a certain period.

Balance Sheet

A report detailing a business's assets, debts, and owner's equity at a particular moment, offering a glimpse into its financial health.

Income Statement

A financial statement that shows a company's revenues and expenses, and profits or losses over a specific period of time.