Recently,Lisa's Wealth Increased by $500

question 117

Multiple Choice

Recently,Lisa's wealth increased by $500.If her wealth were to increase by another $500 in the near future,then her utility would increase,but not by as much as it increased with the recent increase to her wealth.Based on this information,Lisa's utility function

• A)and marginal utility function are both upward sloping.
• B)and marginal utility function are both downward sloping.
• C)is upward sloping and her marginal utility function is downward sloping.
• D)is downward sloping and her marginal utility function is upward sloping.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government on its income.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Pro Forma Statement

A financial document that forecasts the future income, expenses, or financial position of a company under hypothetical conditions.

Variable Costs

Expenditures that vary in a direct manner with the volume of output or sales.