Assume Luis spends his entire income on X and Y, and his indifference curves have the usual convex shape. If Luis maximizes his utility, then: a. there are other bundles that are preferred at the current price ratio.
b. the slope of his indifference curve is smaller than the slope of his budget line.
c. he spends his entire available income.
d. the slope of his indifference curve is greater than the slope of his budget line.

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?