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Suppose a Consumer Is at an Optimum, Consuming 6 Hamburgers

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Essay

Suppose a consumer is at an optimum, consuming 6 hamburgers a week at a price of $1.50 each and 10 donuts a week at 50 cents a donut. If the price of a hamburger increases to $2.00, what will the consumer do to arrive at a new equilibrium? Why?


Definitions:

Excitability

The ability of a cell or tissue to respond to a stimulus, particularly noticed in nerve and muscle cells.

Extensibility

The capability of muscle tissue to be stretched or extended without being damaged.

Contractility

The capability of muscle tissue to contract or shorten, generating force and movement.

Secretion

The process by which substances are produced and discharged from a cell, gland, or organ for a particular function in the organism or for excretion.

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