Jill's utility from an additional dollar increases more when she has $400 than when she has $200. From this, we can conclude that Jill
A) has an increasing marginal utility of wealth.
B) has a decreasing marginal utility of wealth.
C) is risk neutral.
D) has a negative marginal utility of wealth.
A
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Suppose that a $4 per unit tax is imposed on the sellers of DVDs. The effect of the tax will be to
a. shift the supply curve up by exactly $4 and the price paid by buyers will remain unchanged. b. shift the supply curve up by exactly $4 and the price paid by buyers will rise by less than $4. c. shift the supply curve up by exactly $4 and the price received by sellers will rise by exactly $4. d. shift the demand curve down by exactly $4 and the price paid by buyers will fall by exactly $4.
Bill's income is $1,000 and his net taxes are $350. His disposable income is
A. $1,350. B. $750. C. $650. D. -$350.