Along a given indifference curve, a consumer reduces the quantity of one good in favor of more units of the other. In this situation
A. total utility rises.
B. the marginal utility of the first rises and the marginal utility of the second good falls.
C. the marginal rate of substitution falls.
D. both A and B are correct.
Answer: D
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Outlet Malls Coach Handbags sells its purses through traditional department stores and specialty shops. But it sells discounted bags through "Coach Brand" shops at outlet malls. Why does it own the outlet mall stores but not the stores at the traditional department stores and specialty shops?
In the short run, policy that changes aggregate demand changes
a. both unemployment and the price level. b. neither unemployment nor the price level. c. only unemployment. d. only the price level.
If total costs are $50,000 when 1000 units are produced, and total costs are $50,100 when 1001 units are produced, we can conclude that
A) average variable costs are $100. B) average total costs are $100. C) average fixed costs are $100. D) marginal costs are $100.
This agency is responsible for protecting consumers from products posing fire, electrical, chemical, or mechanical hazards or dangers to children.
A. Environmental Protection Agency B. Consumer Product Safety Commission C. Equal Employment Opportunity Commission D. Occupational Safety and Health Administration