The marginal utility of a unit of good Y to Jane is
A. the additional utility that Jane gets from consuming one more unit of Y.
B. defined in money terms as the minimum amount Jane is willing to pay for that additional unit of Y.
C. defined in money terms as the maximum amount Jane is willing to pay for all the Y she buys except that additional unit.
D. All of the responses are correct.
Answer: A
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In the above figure, Reggie's budget line rotates outward from BL1 to BL2. He initially consumes at point A. If his new consumption bundle is at point C, this implies that his demand curve for kiwi fruit
A) has shifted. B) is a vertical line. C) slopes downward. D) is a horizontal line.
Assume an individual is considering opening a new car dealership in a medium-sized metropolitan area (population = 200,000 )
Provide a list of economic variables you would recommend that the person consider in making his decision whether to open the business, and explain your rationale for including each variable.