The Table Below Shows the Total Utility Associated with Various

question 61

Multiple Choice

The table below shows the total utility associated with various units of goods X and Y.Table 7.5

-When a good becomes more expensive, it yields less satisfaction per dollar, so consumers buy less of it and more of other goods. This is called the _____ effect.

• A)substitution
• B)income
• C)replacement
• D)augmentation
• E)disbursement

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Definitions:

Prime Costs

The combined costs of direct materials and direct labor that are directly involved in the production of goods.

Incurred

Refers to costs or expenses that have been realized or experienced by a business as a result of its operations.

Costs

The value of resources spent in the process of producing or providing goods and services.

Cost Formula

A mathematical expression or equation used to calculate the total cost of production, taking into account fixed costs, variable costs, and output levels.