Refer to Figure 10-2. When the price of ice cream cones increases from $2 to $3, quantity demanded decreases from 4 ice cream cones to 3 ice cream cones. This change in quantity demanded is due to
A) the fact that marginal willingness to pay falls. B) the price and output effects.
C) the law of diminishing marginal utility. D) the income and substitution effects.
D
Economics
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At what quantity is Sarah Machinery indifferent between two technologies?
a. 5 b. 6 c. 7 d. 8
Economics
Programs that automatically increase government spending (relative to revenue) during a recession and automatically decrease government spending (relative to revenue) during an economic boom are called:
a. discretionary fiscal policy. b. supply-side programs. c. automatic stabilizers. d. tax credits.
Economics