An Increase in the Quantity Purchased Following a Price Cut

question 2

Multiple Choice

An increase in the quantity purchased following a price cut is:

• A) unrelated to the law of diminishing marginal utility.
• B) inconsistent with the law of diminishing marginal utility.
• C) inconsistent with utility-maximizing behavior.
• D) consistent with the law of diminishing marginal utility.

---

Definitions:

Socioemotional Selectivity Theory

A theory that suggests individuals prioritize different types of goals and social interactions as they age, focusing more on meaningful, emotionally satisfying relationships.

Social Convoy Theory

A theory suggesting that individuals go through life surrounded by a group of people (a "convoy") who provide social support, which can change in size and composition over time.

Relationships

Connections or associations between two or more people, which can be based on friendship, love, solidarity, or other social commitments.

Sandwich Generation

A demographic group that concurrently takes care of their aging parents and their own children, facing pressures from both caretaking roles.