Marginal utility theory predicts that when income increases a
A) person's total utility will not change.
B) person might increase the consumption of some normal goods and decrease the consumption of other normal goods.
C) person's consumption of normal goods will increase.
D) None of the above answers is correct because marginal utility theory does not address how demand changes in response to changes in income.
C
You might also like to view...
A 10 percent decrease in the price of a Pepsi decreases the demand for a Coca-Cola by 50 percent. The cross elasticity of demand between a Pepsi and Coca-Cola is
A) 50. B) 10. C) 5. D) 0.20.
Who does not want a tariff?
(a) Consumers of imported goods (b) Domestic businesses producing goods that compete with the imported goods (c) Politicians trying to garner domestic support from the import-competing domestic industries (d) The federal government
What happens to the price of the product and total revenue for a perfectly competitive firm if it doubles the amount of output it supplies in the market?
What will be an ideal response?
An economy in equilibrium is always at full employment
Indicate whether the statement is true or false