A Consumer Was at an Optimum

question 254

Multiple Choice

A consumer was at an optimum. She then discovers that the marginal utility per dollar spent on food is more than the marginal utility per dollar spent on gasoline. She knows then that

• A) the price of gasoline must have decreased.
• B) the price of food must have increased.
• C) the price of gasoline must have increased or the price of food must have decreased.
• D) the price of gasoline must have decreased or the price of food must have increased.

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Definitions:

Society's Welfare

Refers to the overall well-being and quality of life of the members within a society, often assessed by factors like health, economic stability, and education.

Measured

Quantified or assessed in terms of quantity, degree, or size.

GDP

Gross Domestic Product refers to the aggregate value of all products and services generated inside a nation's boundaries over a defined time frame.

Law Eliminating Holidays

A hypothetical regulation that would remove public holidays from legal recognition, potentially affecting work schedules and compensation.