If Ewan Is Consuming His Utility Maximizing Bundle and the Price

question 250

Multiple Choice

If Ewan is consuming his utility maximizing bundle and the price of one good falls, what happens to the marginal utility per dollar spent on this good (MU/P) , and what should Ewan do?

• A)MU/P has increased and Ewan should buy more of this good.
• B)MU/P has increased and Ewan should buy less of this good.
• C)MU/P has decreased and Ewan should buy more of this good.
• D)MU/P has decreased and Ewan should buy less of this good.

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Definitions:

Community Property

A type of shared asset ownership usually among married couples, in which properties obtained while married are equally held by each partner.

Tenancy In Common

A form of co-ownership where each tenant holds an undivided interest in the property, with no right of survivorship.

Tenancy By The Entirety

A form of joint property ownership that is available only to married couples, where each owns the entire property and neither can dispose of it without the consent of the other.

Tenancy In Common

A form of co-ownership where each tenant has an undivided interest in the property, and there are no survivorship rights.