Given an individual’s current consumption patterns, we know that the person is consuming in such a manner that he is maximizing his satisfaction. Given a decrease in the price of one of the goods he normally purchases, what will happen to the consumer’s total satisfaction and to the marginal utilities connected with the consumption of this particular good. a) His overall satisfaction will increase, but his satisfaction from the last unit consumed of the good with a decreased price will decrease. b) His overall satisfaction will decrease and his satisfaction from the last unit consumed of the good with a decreased price will decrease. c) His overall satisfaction will increase and his satisfaction from the last unit consumed of the good with a decreased price will increase. d) His overall satisfaction will decrease and his satisfaction from the last unit consumed of the good with a decreased price will increase. e) We cannot tell about the changes in his total utility or his marginal utility.
Given an individual’s current consumption patterns, we know that the person is consuming in such a manner that he is maximizing his satisfaction. Given a decrease in the price of one of the goods he normally purchases, what will happen to the consumer’s total satisfaction and to the marginal utilities connected with the consumption of this particular good.
a) His overall satisfaction will increase, but his satisfaction from the last unit consumed of the good with a decreased price will decrease.
b) His overall satisfaction will decrease and his satisfaction from the last unit consumed of the good with a decreased price will decrease.
c) His overall satisfaction will increase and his satisfaction from the last unit consumed of the good with a decreased price will increase.
d) His overall satisfaction will decrease and his satisfaction from the last unit consumed of the good with a decreased price will increase.
e) We cannot tell about the changes in his total utility or his
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