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Kevin, Who Is Currently Maximizing His Utility, Buys Movies and Computer

Question 148

Multiple Choice

Kevin, who is currently maximizing his utility, buys movies and computer games. If the price of computer games drops


A) Kevin will then consume only computer games and zero movies.
B) equilibrium will not be disturbed because it is a permanent condition.
C) Kevin is temporarily in disequilibrium and will buy more games and fewer movies in order to re-establish equilibrium.
D) Kevin is temporarily in disequilibrium and will buy more movies and fewer games in order to re-establish equilibrium.

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