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

You might also like to view...

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