A decrease in the price of product X will:
a. increase the marginal utility per dollar spent on X
b. decrease the marginal utility per dollar spent on X.
c. result in an increase in the total utility from consumption of X.
d. do both (a) and (c).
d
Economics
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The actual time length of the short run is determined by when diminishing marginal returns start
Indicate whether the statement is true or false
Economics
A 10 percent increase in buyers' incomes results in a 5 percent drop in the quantity of hot dogs demanded. In this range, the income elasticity of demand for hot dogs is
a. 0.5 b. 2.0 c. 5.0 d. -2.0 e. -0.5
Economics