Bianca consumes pizza. Marginal utility theory predicts that when the price of pizza increases
A) Bianca's total utility from pizza will increase.
B) Bianca will buy less pizza.
C) Bianca's marginal utility from pizza will increase.
D) Bianca's demand curve for pizza will shift leftward.
B
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A 10 percent increase in the price of root beer causes a 5 percent increase in the quantity demanded of orange soda. This means that
a. root beer and orange soda are substitutes b. root beer and orange soda are complements c. the cross-price elasticity of demand is elastic d. the cross-price elasticity of demand is equal to 2 e. the cross-price elasticity of demand is equal to -2
Which of the following ia a belief of classical theory?
a. Long-run full employment. b. Inflexible wages. c. Inflexible prices. d. All of these.
Consuming one more of a good increases its marginal-utility-to-price ratio, and consuming one less of the other good lowers its marginal-utility-to-price ratio
Indicate whether the statement is true or false
Derivatives:
a. can be used to reduce risk b. can be a source of risk c. made the financial crisis of 2007-2009 not as bad as it would otherwise have been d. a and b only e. all of these