Suppose a Person's Utility Is Only a Function of Their

question 2

Multiple Choice

Suppose a person's utility is only a function of their consumption of diet soda and they do not care which brand,Diet Coke (DC) or Diet Pepsi (DP) they consume.Suppose further that .If PDC rises but it remains less than PDP then the consumption of DC

• A)Falls from a positive amount to zero
• B)Falls from a positive amount to another positive amount.
• C)rises.
• D)stays at zero.

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Definitions:

Sales Revenue

The revenue a company earns from selling products or delivering services.

Interest Expense

The sum an entity is liable for as a result of borrowing funds over a particular period.

Unearned Revenues

This reflects money received by a company for goods or services yet to be provided.

Retained Earnings

The portion of net income that is kept within the company rather than distributed to its shareholders as dividends.