Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increase in quantity of oranges consumed
B
Decrease in quantity of oranges consumed
C
No change in quantity of oranges consumed
D
Increase in utility from oranges
Understanding the Answer
Let's break down why this is correct
Answer
When the price of apples increases, people might buy fewer apples because they cost more. If the relationship between apples and oranges is similar, this means that as apples become more expensive and less appealing, people might choose to buy more oranges instead. This is because oranges can be a substitute for apples; if one is too pricey, people look for the other. So, if we think of the price of apples as A and the quantity consumed as B, we can say that the price of oranges is C, and the quantity consumed of oranges will increase as a reaction to the higher price of apples. Therefore, we can see that the change in consumption of oranges relates to the change in price of apples in a way that reflects how consumers adjust their choices based on price changes.
Detailed Explanation
When the price of apples goes up, people might buy fewer apples. Other options are incorrect because Some might think that higher apple prices mean more oranges are bought; This choice suggests that nothing changes with oranges.
Key Concepts
Utility Maximization
Price Elasticity of Demand
Consumer Choice Theory
Topic
Utility Maximization After Price Change
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.