Marginal utility theory predicts that
A) when the price of a good rises, the quantity demanded of that good decreases.
B) if the price of one good rises, the demand for a substitute good increases.
C) if income increases, the demand for a normal good increases.
D) All of the above answers are correct because all are predictions of marginal utility theory.
D
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Which of the following is correct when a price floor is set above the equilibrium price?
a. quantity supplied is less than quantity demanded at the set price b. quantity supplied is equal to quantity demanded at the set price c. at the set price there will be a shortage d. The market price is greater than the price floor e. quantity supplied exceeds quantity demanded at the set price
Protectionist legislation is often passed because: a. employers in the affected industry lobby more effectively than the workers in that industry
b. both employers and workers in the affected industry lobby for protectionist policies. c. trade restrictions often benefit domestic consumers in the long run, though they must pay more in the short run. d. it helps to keep domestic prices at a relatively lower level.
Suppose that the "Millennial" generation values leisure more than past generations. We can expect a decrease in the labor supply as the Millennials enter their prime working ages and a corresponding decrease in wages
a. True b. False Indicate whether the statement is true or false
In the long run, monopolistically competitive firms become perfectly competitive firms.
Answer the following statement true (T) or false (F)