If the price of a product rises, consumers buy less of the good because the:
a. MU/P of the good falls below the MU/P of other goods.
b. MU/P of the good rises above the MU/P of other goods.
c. marginal utility of the good diminishes.
d. total utility of the good diminishes.
e. marginal utility of the good rises.
a
You might also like to view...
The underground economy
A) is measured by government officials through tax returns. B) is difficult to describe but easy to measure. C) includes production that uses illegal workers who are paid less than minimum wage. D) includes mining production. E) is estimated by the government and the estimate is part of official GDP.
The United States has a comparative advantage and specialize in the production of airplanes. Compared to the situation with no trade, which of the following will occur?
A) More airplanes will be produced in the United States. B) There will be no change in the price of airplanes in the United States. C) The world price of airplanes will increase. D) The quantity of airplanes demanded in the United States will increase.
The deadweight loss represents the sum of additional consumer and producer surplus should the firm produce the quantity where P = MC rather than where MR = MC
What will be an ideal response?
Logrolling refers to
A) choosing political platforms to appeal to special interests. B) trading votes to gain support for legislation. C) choosing political platforms to appeal to the "middle-of-the-road" voter. D) gathering votes by pretending to support policies that appeal to voters. E) c and d