Multiple Choice
Exhibit 6-6 Marginal utility for data for clothes and amusement
Refer to Exhibit 6-6. Your budget is $50. The price of amusement goods is $10. If the price of clothes falls to $4, which of the following statements is true ?
A) The marginal-utility-to-price ratio for clothes will decrease.
B) The marginal-utility-to-price ratio for clothes will increase.
C) The quantity demanded of clothes will decrease.
D) The quantity demanded for amusement goods will remain constant.
Correct Answer:
Verified
Correct Answer:
Verified
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