No matter what the price of a given item of food,a person will eat the same amount of that food.This is __________ with the idea of __________.
A) consistent; consumer equilibrium
B) not consistent; consumer equilibrium
C) consistent; maximizing total utility
D) consistent; consumers' surplus
E) none of the above

Question

Quizplus · Accepted Answer

This statement is not consistent with the idea of consumer equilibrium, which suggests that the quantity demanded of a good is determined by the price and the consumer's marginal utility for that good. According to consumer equilibrium, if the price of a good increases, the quantity demanded will decrease, because the marginal utility of the good will decrease relative to its price. Moreover, if the price of a good decreases, the quantity demanded will increase, because the marginal utility of the good will increase relative to its price.

No Matter What the Price of a Given Item of Food,a