A consumer has been buying 2 magazines and 1 book each month. The price of magazines then decreases, which directly causes the marginal utility per dollar spent on

A. magazines to increase, thereby inducing the consumer to purchase more magazines and fewer books.
B. books to increase, thereby inducing the consumer to purchase fewer magazines and more books.
C. magazines to increase, thereby inducing the consumer to purchase fewer magazines and more books.
D. books to decrease, thereby inducing the consumer to purchase fewer magazines and more books.


Answer: A

Economics

You might also like to view...

Bidding in a Dutch auction continues until ________

A) no bidder is willing to bid any higher B) a bidder accepts the price announced by the auctioneer C) a bidder bids above the market price of the good D) a bidder bids below the starting bid

Economics

Suppose automobile salesmen are required to pay a $1000 tax per car sold

Is it likely that the auto salesmen will bear the entire burden of this tax? Why or why not? Would it matter if the demanders were legally required to pay the tax? Explain in detail your answer.

Economics

Single-owner proprietorships often unintentionally exaggerate their profits because they

A) forget their explicit losses. B) look at after-tax instead of pre-tax costs. C) pay their bills late and therefore incur large interest charges. D) neglect to consider the opportunity cost of the owner's labor.

Economics

An economy in which output has decreased and prices have increased would suggest that there has been a:

A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.

Economics