Asked by
Kathleen Pagunuran
on Dec 05, 2024
Verified
Smedley,a careful utility maximizer,consumes peanut butter and broccoli.Assume that both peanut butter and broccoli are normal goods.Right after he achieves the utility-maximizing level of consumption of the two goods,the price of broccoli increases.To adjust to this event,he consumes _____ peanut butter and _____ broccoli.
A) more;less
B) less;less
C) more;more
D) less;more
Utility-Maximizing
The economic principle that individuals seek to obtain the greatest utility or satisfaction from their consumption choices.
Peanut Butter
A paste or spread for food, created from peanuts that are dry-roasted and then ground.
Broccoli
A green plant from the cabbage family, known for its edible flower heads and stalk.
- Employ the strategy of maximizing utility to revise consumption habits with changing prices.
- Recognize the influence of price fluctuations on the consumption patterns of goods and comprehend the effects of substitution.
Verified Answer
CK
Learning Objectives
- Employ the strategy of maximizing utility to revise consumption habits with changing prices.
- Recognize the influence of price fluctuations on the consumption patterns of goods and comprehend the effects of substitution.