If a Consumer Is Maximizing Utility and Then the Price

question 133

Multiple Choice

If a consumer is maximizing utility and then the price of Good A increases:

• A) the marginal utility from the consumption of Good A will fall.
• B) the marginal utility from the consumption of Good A will remain unchanged.
• C) the marginal utility per dollar spent on Good A will decrease.
• D) consumption of Good A will increase.

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Definitions:

CCA Class

A categorization in Canadian tax law that determines the depreciation rate for tax purposes on capital assets.

Depreciation Tax Shield

A reduction in taxable income for a business, resulting from the depreciation expense claimed on tangible assets.

Tax Rate

The percentage of income or value that is collected by the government as tax.

MACRS Depreciation

A method of depreciation in the U.S. that allows for a faster write-off of assets under the tax code.