Suppose the Price of Is $20,the Price of Is $10,and

question 12

Multiple Choice

Suppose the price of is $20,the price of is $10,and that the consumer is currently spending all available income.At the consumer's current consumption basket the marginal utility of is 8 and the marginal utility of is 4.

• A) The consumer is currently maximizing utility.
• B) The consumer could increase utility by consuming more of good and less of good
• C) The consumer could increase utility by consuming more of good and less of good .
• D) Nothing can be said about the consumer's utility because we do not know the consumer's income or utility function.

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Definitions:

Hunger

Hunger refers to the physical sensation or condition that arises from the need for food, driving individuals to seek and consume sustenance.

Positive Emotions

Feelings or emotions that inspire well-being, happiness, and satisfaction, contributing to positive mental health and overall life satisfaction.

Tolerate Pain

The ability to endure discomfort or suffering without allowing it to overtly affect one's performance or wellbeing.

Technological Advances

The forward progression in technology leading to the development of new tools, systems, or methods that improve efficiency or effectiveness.