A consumer is at an optimum when the price of one good she has been consuming decreases. As a result
A) the value of the marginal utility of the last unit consumed has increased.
B) the value of the marginal utility of the last unit consumed has decreased.
C) the price of the other good must decrease too.
D) the marginal utility of the last dollar spent on this good is now greater than the marginal utility of the last dollar spent on other goods.
Answer: D
You might also like to view...
A change in the level of the supply of money
A) increases the long-run values of the interest rate and real output. B) decreases the long-run values of the interest rate and real output. C) has no effect on the long-run values of the interest rate, but may affect real output. D) has no effect on the long-run values of real output, but may affect the interest rate. E) has no effect on the long-run values of the interest rate and real output.
Which of the following is true?
A) Domestic policies are never barriers to trade. B) Tariffs and quotas in industrial nations are significantly higher now than they were in 1950. C) Tariffs and quotas are the primary trade barrier in industrialized countries. D) Domestic policies intended to protect consumers or the environment may become trade barriers.