Question

Suppose a consumer is purchasing Coke and pretzels in quantities such that she is achieving consumer equilibrium. Then the price of coke increases. The consumer will likely __________ her consumption of Coke and the marginal utility of Coke will __________ while the total utility from Coke will __________.

Answer 1

Answer:

increase, decrease, increase

Explanation:

When know the net profit of all financial businesses is maximized, and the resource distribution must be effective and achievable, but there must be a consideration, market allocation must be competitive or well

so here when coke prices go up. The consumer will probably increase the consumption of coke and the marginal utility of the coke will decrease, while the overall utility of the coke will increase.