Lower Prices Increase the Marginal Utility Per Dollar Spent and Cause

Multiple Choice

Lower prices increase the marginal utility per dollar spent and cause consumers to buy more of a good.On the other hand,higher prices lower the marginal utility per dollar spent and cause consumers to buy less of a good.This is a way of restating ________ in terms of marginal utility.

A) diminishing marginal utility
B) satisfaction
C) the law of demand
D) the law of supply
E) the real-income effect