To Maximize Your Satisfaction When Deciding Between Two Goods

question 32

Multiple Choice

To maximize your satisfaction when deciding between two goods:

• A) you must consume at the point where the marginal utility of each good is equal, no matter the price of each good.
• B) you do not need to consider opportunity costs.
• C) you must spend more money than you have.
• D) you must get the most satisfaction out of every dollar you spend.
• E) the price of each good considered must be equal.

Determine the equilibrium price and quantity in a given market situation.

Comprehend the impact of global events and decisions by organizations like OPEC on market supply.

Understand the concepts of supply and demand.

Identify factors that cause shifts in supply and demand curves.

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Definitions:

Critical Thinking

The process of objectively analyzing and evaluating an issue in order to form a judgment.

Coincidence

A situation in which events happen at the same time in a way that is not planned or expected.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Restaurant

A business that prepares and sells food and drinks to customers.