When Ramona is in consumer equilibrium
A) her total utilities of all goods are equal.
B) she is maximizing her utility, given her income and the prices of goods and services.
C) her total utility per dollar spent is equal for all goods.
D) any change in prices would make her worse off.
B
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If aggregate demand falls short of current output, business firms will ________ production to ________ inventories
A) cut; keep from accumulating B) expand; keep from accumulating C) cut; build up D) expand; build up
The Federal Reserve is considered by experts to be a government agency that is
A) totally independent from the rest of the federal government. B) semi-independent from the rest of the federal government. C) closely tied to Congress. D) subservient to the interests of large money-center banks.
Suppose that a dollar buys 120 yen. If a VCR sells for 18,600 yen in Japan, the price of the VCR in dollars is ________
A) $186.00 B) $223.20 C) $120.00 D) $155.00
If producers incorrectly set the price of their product too high:
A. a shortage will result. B. a surplus will result. C. equilibrium will result. D. the industry will die out soon.