The principle of diminishing marginal utility says that:
a. as more of a good or service is consumed, demand decreases.
b. as more of a good or service is consumed, the price will rise.
c. the marginal utility of additional units consumed increases.
d. an increase in income causes demand to increase.
e. the marginal utility of additional units consumed decreases.
e
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Risk is typically measured:
a. by comparing the size of a firm to other firms operating in the market. b. by looking at the economic profit that a firm has earned in the past few years. c. by determining whether the bonds issued by a firm are of high or low value. d. by comparing how much the stock price fluctuates compared with an average firm. e. by comparing how much the price of the bond falls whenever the price of a firm's product rises.
Which of the following will NOT lead to an increase in demand for a normal good?
A. an increase in income B. a decrease in the price of a complement good C. an increase in the number of consumers D. an increase in the price of an input