Question 15 1 pts When buying goods rationally Kim will always make sure 0 that
ID: 1162387 • Letter: Q
Question
Question 15 1 pts When buying goods rationally Kim will always make sure 0 that the bang for her buck" or marginal utility per dollar spent on all goods will be the same. O she will focus on buying the most goods at the lowest price she can find O she will divide her money up evenly on the things she wants to purchase. O she will focus on buying as many of her favorite good as possible; then she will save the rest D Question 16 1 pts For a normal good as the price of the good increases what happens to total revenue? O total revenue will always increase the more you raise your prices O total revenue will not change, it will be constant Ototal revenue will always decrease the more you raise your prices Ototal revenue will first increase then decrease based on elasticity of demand.Explanation / Answer
15) Rational consumer take decision which can give them greatest satisfaction given the choice of purchase available. Kim as a rational consumer will focus on buying as many as her favorite good possible. The last option is correct.
16) For normal good total revenue depends on the elasticity of demand. If demand is elastic, price increases then quantity will fall to a great extent. As a result total revenue will fall. If demand is inelastic, the price rises then the quantity will fall a little. As a result total revenue will increase. So the last option is correct.