Multiple Choice
John is allocating his household expenditure between groceries and housing in order to maximize total utility.For the quantities of groceries and housing he has chosen,an increase in the price of housing will,ceteris paribus,
A) increase the marginal utility of a unit of housing.
B) increase the marginal utility per dollar spent on housing.
C) reduce the marginal utility of a unit of housing.
D) reduce the marginal utility per dollar spent on housing.
E) have no effect on the marginal utility per dollar spent on housing.
Correct Answer:

Verified
Correct Answer:
Verified
Q99: Assume you are consuming two goods,X and
Q100: 6A-5 Income and Substitution Effects <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5441/.jpg"
Q101: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5441/.jpg" alt=" FIGURE 6-2 -Refer
Q102: The "law" of diminishing marginal utility implies
Q103: Consider the substitution and income effects of
Q105: In which of the following situations will
Q106: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5441/.jpg" alt=" FIGURE 6-2 -Refer
Q107: Dave's Consumer Surplus on Movie Rentals per
Q108: If consumption of an extra unit of
Q109: Suppose a consumer can purchase only two