Emma consumes only tacos and pizza. They are substitute goods for her. The price of a taco falls. Emma will buy ________ tacos and her marginal utility from the last slice of pizza she eats ________
A) more; does not change
B) more; decreases
C) the same quantity; does not change
D) less; increases
B
You might also like to view...
One of the reasons economists approve of limiting trade would be
A. the preservation of a high-wage company. B. the protection of national security. C. the preservation of a high-employment company. D. the preservation of a large-production company.
The interest rate effect shows that if the price level increases
A. consumers and businesses will borrow more to replenish their real money balances, which pushes up interest rates and causes spending to decrease. B. U.S. exports and imports will both decrease. C. consumers and businesses will increase their spending to buy the same amount of goods as before to make up for the higher interest rates. D. the real value of financial assets will increase.