Government redistribution of income in response to individuals free riding on the charity of others is a Pareto superior move

Marginal utility theory assumes that when Sally consume less of a good that she was previously consuming more than one unit of, her ________

A) total utility increases B) marginal utility increases C) income increases D) total utility is maximized

After a hurricane in Florida knocked out the regional water supply for several days, the demand for bottled water increased sharply. In a market economy, how will this increase in demand affect the equilibrium price and quantity of bottled water?

a. Price will increase, and quantity will decrease. b. Price will decrease, and quantity will decrease. c. Price will decrease, and quantity will increase. d. Price will increase, and quantity will increase.