If the price of a good falls, the marginal utility per dollar received from consuming a specific unit of that good
a. also falls
b. stays the same
c. rises
d. will rise or fall, depending on the consumer
e. remains unchanged, provided the consumer buys no more of the good
C
You might also like to view...
Which of the following is an advantage to society of monopolistic competition?
A) production at the lowest possible average cost B) product variety C) only essential costs are incurred D) long-run profitability E) The firms have excess capacity so they are are always willing to increase their production.
A market failure associated with Keynesian economics is
A) pollution externalities. B) economic agents cannot agree on prices and wages that are socially efficient. C) insurance is imperfect. D) banking panics.
An entrepreneur is:
a. an employee in a factory. b. the manager of a factory. c. the person who conceives and starts a business. d. the person who contracts to work for a specific price. e. the person who does not assume any risk in business.
If the CPI was 101.7 in 2006 and 101.5 in 2007, it can be concluded that
a. 2001 was the base year b. all goods were more expensive in 2007 than in 2006 c. all goods were less expensive in 2007 than in 2006 d. all goods were less expensive in 2006 than in 2007 e. the price level fell from 2006 to 2007