Suppose a Consumer Is at an Optimum

question 318

Multiple Choice

Suppose a consumer is at an optimum. What happens when the price of one good she has been consuming increases?

• A) The value of the marginal utility of the last unit consumed decreases.
• B) The value of the marginal utility of the last unit consumed increases.
• C) The marginal utility per dollar spent on the last unit consumed of that good increases by the same proportion as the price increases.
• D) The marginal utility per dollar spent on the last unit consumed of that good is now smaller than the marginal utility per dollar spent on other goods the person consumes.

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Definitions:

Spiders

Arachnids characterized by eight legs, typically spinning webs to capture prey, and playing a significant role in controlling insect populations.

Spruce Budworm

A destructive North American caterpillar that infests conifer forests, notably spruce and fir trees, causing significant damage to these ecosystems during outbreak periods.

Pheromones

Substances created and emitted by an animal into its surroundings that influence the behavior or bodily functions of other members of the same species.

Synthesized

Created or formed by combining simpler substances or elements through a chemical process, leading to a new compound or product.