Asked by
Chelsea Waris
on Oct 27, 2024
Verified
Steven consumes staples and paper clips.He is maximizing his utility in consumption of both goods.The price of staples falls.After the change in price,Steven should consume _____ staples and _____ paper clips.
A) more;more
B) more;fewer
C) fewer;fewer
D) fewer;more
Utility-Maximizing
A principle in economics where consumers allocate their income to purchase goods and services that provide the highest satisfaction or utility.
Staples
Basic or essential food items and products that are consumed regularly and necessary for daily living.
Paper Clips
Small pieces of bent wire or plastic used for holding sheets of paper together.
- Utilize the utility maximization concept to adapt consumption behaviors following changes in prices.
- Acquire knowledge on how variations in pricing affect the marginal utility of goods used.
Verified Answer
AJ
Learning Objectives
- Utilize the utility maximization concept to adapt consumption behaviors following changes in prices.
- Acquire knowledge on how variations in pricing affect the marginal utility of goods used.
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