If the price of a good falls, before the amount consumed changes the marginal utility per dollar from that good
A) decreases.
B) increases.
C) might either increase or decrease depending on whether the good is a substitute or a complement.
D) More information is needed to determine the answer.
B
You might also like to view...
The reported reduction in the exchange-rate pass through to import prices means that U.S. inflation will be relatively insensitive to exchange rate changes
Indicate whether the statement is true or false
Data on the U.S. income distribution suggest that
a. black-white income differentials have decreased b. black-white income differentials have increased c. the distribution of income among blacks is more uneven than the overall distribution of income d. the distribution of income among blacks is less uneven than the overall distribution of income e. the distribution of income among blacks follows approximately the same pattern as the overall distribution of income