If an Individual Consumes Only Two Goods and Consumption of One

question 395

Multiple Choice

If an individual consumes only two goods and consumption of one good increases, then in order to keep the consumer on the same indifference curve, consumption of the other good must

• A) increase.
• B) decrease.
• C) increase proportionately.
• D) become negative.

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Definitions:

Profitable

The state of yielding financial gain or benefit, where the income generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Personal Care Products

Consumer products used for personal hygiene and for beautification, such as cosmetics, soaps, lotions, and dental care items.

Communicating

The process of sharing or exchanging information, thoughts, or messages through speech, writing, or other mediums.

War Zone

A region where armed conflict is occurring, often characterized by violence, instability, and danger to civilians and combatants.