When a Consumer Shifts His Purchases from Product a to Product

question 56

Multiple Choice

When a consumer shifts his purchases from product A to product B, the marginal utility of

• A) A falls and the marginal utility of B will increase.
• B) both A and B will decrease.
• C) A increases and the marginal utility of B will fall.
• D) both A and B will increase.

---

Definitions:

Regression Line

A line that best fits the data points in a scatter plot, showing the relationship between the independent and dependent variables.

Slope

In statistics, it typically refers to the rate at which one variable changes in relation to another in a linear regression model.

Coefficient Of Determination

A statistical measure represented as a number between 0 and 1 that indicates the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

SSR

The sum of squared residuals, a measure of the discrepancy between the data and an estimation model.