Multiple Choice
If Ewan is consuming his utility maximizing bundle and the price of one good falls, what happens to the marginal utility per dollar spent on this good (MU/P) , and what should Ewan do?
A) MU/P has increased and Ewan should buy more of this good.
B) MU/P has increased and Ewan should buy less of this good.
C) MU/P has decreased and Ewan should buy more of this good.
D) MU/P has decreased and Ewan should buy less of this good.
Correct Answer:
Verified
Correct Answer:
Verified
Q245: Table 10-5<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4193/.jpg" alt="Table 10-5
Q246: Firms pay famous individuals to endorse their
Q247: Arnie Ziffel has $20 per week to
Q248: If total utility increases at a decreasing
Q249: Optimal decisions are made<br>A)in the marketplace.<br>B)if information
Q251: One possible reason as to why consumers
Q252: Table 10-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4193/.jpg" alt="Table 10-2
Q253: Giffen goods<br>A)are theoretical and have never been
Q254: Figure 10-3<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4193/.jpg" alt="Figure 10-3
Q255: In making decisions about what to consume,