While eating at Alex's "Pizza by the Slice" restaurant, Kara experiences diminishing marginal utility. She gained 10 units of satisfaction from her first slice of pizza consumed and would only receive 5 units of satisfaction from consuming a second
slice, at the same price. Based on this information we can conclude that:
A. Alex may have to lower the price to convince Kara to buy a second slice.
B. Kara will not eat a second slice, even if it is given to her at no charge.
C. Kara will definitely want to buy a second slice of pizza.
D. even if Kara buys a second slice, she will not buy a third slice.
Answer: A
You might also like to view...
Market equilibrium
i. can never occur because there are always people who want a good but cannot afford it. ii. occurs at the intersection of the supply and demand curves. iii. is the point where the price equals the quantity. A) ii only B) iii only C) ii and iii D) i only E) i and ii
In the market for used cars we have 10 sellers, willing to sell at the prices of $1000 . $2000 . $3000 . $4000 . $5000 . $6000 . $7000 . $8000 . $9000 . $10000 . If the equilibrium price in the market is $2500, how many cars would be sold?
a. 1 b. 2 c. 3 d. 4
Of the following markets, which is most likely to be monopolistically competitive?
a. automobiles b. corn c. overnight package delivery d. air travel between a small city and a larger one e. fast food
If the fundamental value of the exchange rate is ________ than the official (fixed) exchange rate, the country has an ________ problem, and it will gain reserves.
A. greater; overvaluation B. less; undervaluation C. greater; undervaluation D. less; overvaluation