Assume the Graph Shown Represents Dawn's Budget Constraint

question 50

Multiple Choice

Assume the graph shown represents Dawn's budget constraint.If Dawn's income to spend on these two items increased and Dawn spends all her income on these two goods,then Dawn's total utility from consuming these two goods:

• A) will likely go up, since she can afford more of both goods now.
• B) will likely go down, since her marginal utility of additional items decreases the more she consumes.
• C) will likely go down, since she is probably sick of these two things already.
• D) will likely go up, since her marginal utility of additional items increases the more she consumes.

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Definitions:

Guardian Appointed

The designation of a person by a court to care for and make decisions for someone unable to do so themselves, such as a minor or an incapacitated adult.

Contracts Voidable

Agreements that may be declared invalid by one or more of the parties involved due to reasons such as fraud, duress, or incapacity, but remain effective unless voided.

Age of Majority

The legally defined age at which a person is considered an adult, with full legal rights and responsibilities.

Disaffirm

The legal act of rejecting or voiding a contract or agreement, especially used in contexts where one party is not legally competent to enter into a contract.