D. A change in the price of the product will lead to a movement along the curve and not a complete shift of the curve
Answer:
B. not maximizing utility because the marginal utility per dollar spent on movies is not equal to the marginal utility per dollar spent on CDs
Explanation:
Consumer is at utility maximising equilibrium in case of two goods consumption, when Marginal Utility per unit of dollar spent on each good is equal , i.e :
MU (G1) / P (G1) = MU (G2) / P (G2) , where ;
MU (G1) = Marginal Utility of Good 1 , MU (G2) = Marginal Utility of Good2 , P (G1) = Price of Good 1 , P (G2) = Price of Good 2
If Marginal Utility per unit of dollar spent on any good is higher than other , it is beneficial (utility maximising) for consumer to increase consumption of good having higher MU/P .
Given: MU (Movie) = 50, P (Movie) = 5 , MU (CD) = 96, P (CD) = 10. MU (Mov) / P (Mov) i.e 50/5 = 10 > MU(CD) / P(CD) i.e 96 / 10 = 9.6
Since consumer's MU per unit of dollar spent is not equal for both goods , consumer is not at utility maximising equilibrium.
Answer:
Demand is high and if the manufacturing prices increase
Answer:
C
Explanation:
You add the different transportation expenses.
Answer: Shopping products
Explanation:
A shopping product is a type of product which equires consumer research and the comparison of different brands. Shopping products are items that are less frequently bought by the consumer hence the consumer compare several available brands in the market.
Consumers need planning, time and efforts before a final decision is taken on whether to purchase the product or not.
For example, considering the audio system that Joel wants to buy, he analyzed available brands firstly in the market taking the price and quality into consideration after which a wireless bluetoth home audio system was chosen and paid for. Examples of shopping product are washers, fridge, television etc.
