Suppose That the Ratio of Marginal Utility to Price for Good

question 46

Multiple Choice

Suppose that the ratio of marginal utility to price for good A is 10, and the ratio of marginal utility to price for good B is 5. Assume that for her current consumption of goods A and B the consumer is experiencing diminishing marginal utility for each good. In order for this consumer to be at her utility maximizing point, she should

• A) consume less A and more B .
• B) consume more A and less B .
• C) consume more A and more B .
• D) do nothing - the consumer is already in equilibrium.

---

Definitions:

Relations-oriented Leadership

Leadership style focused on supporting, motivating, and developing employees on a personal level, prioritizing relationships over tasks.

Traits

Characteristic patterns of thought, behavior, or disposition that are inherent in an individual.

Skills

Abilities or expertise developed through training or experience, essential for performing tasks or solving problems effectively.

Collective Identification

The cognitive connection and sense of belonging individuals feel towards a larger group, organization, or movement, typically influencing their actions and beliefs.