Answer the following statement(s) true (T) or false (F)

1. You can increase your total satisfaction by buying goods with lower marginal utility at a higher price.
2. Sometimes when you buy additional units of one good and its marginal utility decreases, the marginal utility of the goods you did not buy increases.
3. If marginal utility is held constant, consumer equilibrium can be maintained even if the price of certain goods fall.
4. Behavioral economics draws on human psychology.
5. Behavioral economists assume consumers are always rational and informed.


1. False
2. True
3. False
4. True
5. False

Economics

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Economics