Suppose Katy Lucus maximized her total utility by buying different quantities of a variety of goods. Now suppose the price of one good rises. She then buys less of that good because the
a. MU/P of that good falls below the MU/P of other goods
b. MU/P of that good rises above the MU/P of other goods
c. marginal utility of that good diminishes
d. total utility of that good diminishes
e. marginal utility of that good rises
A
Economics
You might also like to view...
The tools, instruments, machines, and buildings that people use to produce goods and services are called human capital
Indicate whether the statement is true or false
Economics
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. The slope of Country A's production possibilities frontier is ________, and Country B's is ________.
A. 1/5; 1/3 B. -5; -3 C. -30; -3 D. -1/5; -1/3
Economics