Suppose a consumer buys only food and clothing. If the quantity of food bought decreases while that of clothing remains the same, their marginal utility from food will:
a. fall relative to the marginal utility of clothing
b. rise relative to the marginal utility of clothing.
c. rise, but not as fast as their marginal utility of clothing rises.
d. fall, but not as fast as their marginal utility of clothing falls.
b
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The Phillips curve
Suppose you are given the following demand data for a product.PriceQuantity Demanded$1030940850760670The price elasticity of demand (based on the midpoint formula) when price decreases from $9 to $7 is
A. -1.16. B. -2.27. C. -.63. D. -1.60.
Which of the following institutions is NOT a depository institution?
A) the U.S. Treasury B) a commercial bank C) a money market mutual fund D) a thrift institution, such as a savings and loan association
If the demand for beans tends to decline as incomes rise, everything else held constant, beans are _____
a. luxury goods b. normal goods c. price sensitive d. not price sensitive e. inferior goods