Suppose That a Consumer Is at an Optimum Consuming a and B

question 78

Multiple Choice

Suppose that a consumer is at an optimum consuming A and B. If the price of A falls, then to get to a new equilibrium the consumer must

• A) purchase less A and more B.
• B) purchase less B and less A.
• C) purchase more A.
• D) purchase more B.

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Definitions:

Statistically Significant

Indicates that the result of a statistical analysis is unlikely to have occurred by chance alone, according to a predefined significance level.

Null Hypothesis

A statement used in statistical testing that assumes no effect or no difference between groups, serving as the default assumption to test against.

Alternative Hypotheses

In statistics, alternative hypotheses suggest that there is a significant difference, effect, or relationship between two variables.

Square Footage

A measure of area used primarily in the United States, equivalent to the area of a square with sides one foot in length.