Assume That a Computer Is a Normal Good

question 131

Multiple Choice

Assume that a computer is a normal good. An increase in consumer income, other things being equal, would:

• A) cause an upward movement along the demand curve for computers.
• B) cause a downward movement along the demand curve for computers.
• C) shift the demand curve for computers to the left.
• D) shift the demand curve for computers to the right.

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Definitions:

Marginal Utility

The extra pleasure or benefit gained by a person from consuming one more unit of a product or service.

Total Utility

The overall satisfaction or utility that a consumer derives from consuming a certain quantity of goods or services.

Marginal Utility

The extra pleasure or benefit a consumer receives from using an additional unit of a product or service.

Maximizing Utility

The process by which individuals or consumers adjust their consumption of goods and services to achieve the highest level of satisfaction or utility.