Suppose the price of soda is $2 each and the price of a pizza slice is $4 each. Jean maximizes utility and buys only sodas and slices of pizza. If the price of a soda increases to $3 each, Jean's marginal utility per soda
A) will increase and she'll buy more soda.
B) will decrease and she'll buy fewer sodas.
C) will decrease and she'll buy more pizza.
D) Both B and C are correct.
D
Economics
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Which of the following is an economic policy that promotes the efficient quantity of apartments?
A) a rent floor above the equilibrium rent B) a rent ceiling below the equilibrium rent C) a sales tax imposed on renting an apartment D) none of the above
Economics
The concept that producing goods and services generates the means and the willingness to purchase other goods and services is
A) the Keynesian approach. B) money illusion. C) Say's law. D) cost-push inflation.
Economics