A Consumer Is at an Optimum When the Price of One

question 144

Multiple Choice

A consumer is at an optimum when the price of one good she has been consuming decreases. As a result

• A) the value of the marginal utility of the last unit consumed has increased.
• B) the value of the marginal utility of the last unit consumed has decreased.
• C) the price of the other good must decrease too.
• D) the marginal utility of the last dollar spent on this good is now greater than the marginal utility of the last dollar spent on other goods.

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Definitions:

IQ Score

A measure of a person's cognitive abilities and potential, usually represented as a score derived from standardized tests.

Factor Analysis

A statistical technique that enables researchers to determine the relationships among a large number of items, such as test items.

Mental Abilities

The range of cognitive functions and processes that include reasoning, memory, problem-solving, and thinking skills.

Sternberg

Refers to Robert Sternberg, an American psychologist best known for his theory on love and intelligence.