Suppose a person's utility is only a function of their consumption of diet soda and they do not care which brand,Diet Coke (DC)or Diet Pepsi (DP)they consume.Suppose further that $\mathrm { P } _ { \mathrm { DC } } \mathrm { P } _ { \mathrm { DP } }$ then the consumption of DC A)Falls from a positive amount to zero B)Falls from a positive amount to another positive amount. C)rises. D)stays at zero.

Question

Suppose a person's utility is only a function of their consumption of diet soda and they do not care which brand,Diet Coke (DC)or Diet Pepsi (DP)they consume.Suppose further that $\mathrm { P } _ { \mathrm { DC } } < \mathrm { P } _ { \mathrm { DP } }$ .If PDC rises to a point where $\mathrm { P } _ { \mathrm { DC } } > \mathrm { P } _ { \mathrm { DP } }$ then the consumption of DC
A)Falls from a positive amount to zero
B)Falls from a positive amount to another positive amount.
C)rises.
D)stays at zero.

Quizplus · Accepted Answer

The Answer is A

Suppose a Person's Utility Is Only a Function of Their PDC<PDP\mathrm { P } _ { \mathrm { DC } } < \mathrm { P } _ { \mathrm { DP } }PDC​<PDP​

Suppose a Person's Utility Is Only a Function of Their $\mathrm { P } _ { \mathrm { DC } } < \mathrm { P } _ { \mathrm { DP } }$