If the marginal utility of a product is diminishing relative to the marginal utility of other products, then _____
a. the consumer is in equilibrium
b. the consumer has been purchasing relatively less of the product
c. the consumer has been purchasing relatively more of the product
d. the price of the product must have increased
e. the price of the product must have decreased
c
You might also like to view...
Refer to Scenario 8-1. The value added of CANOES-R-US for each canoe equals
A) $1,200. B) $800. C) $500. D) $400.
Assume that the above figure represents the domestic supply and demand for coffee.The domestic price with no trade is represented by $5.50 . The price with free trade is represented by $4.00
Assume that the government places a $1 per pound tariff on imported coffee, which decreases the domestic quantity demanded of coffee by 100 million pounds and increases domestic production by 100 million pounds. Draw the rectangle that would represent the amount of tax revenue that the government would realize from this tax and calculate the dollar figure.