When a consumer is maximizing total utility,
A) the average utility from each dollar spent is the same.
B) total utility cannot be increased by reallocating expenditures among various products.
C) the total utility obtainable from each product is at a maximum.
D) the marginal utility of the last unit of each product purchased is zero.
Ans: B) total utility cannot be increased by reallocating expenditures among various products.
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The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is
A) a political statement. B) a positive statement. C) a normative statement. D) a scientific statement.
A fall in the price of a competing product will produce an outward shift in the demand curve for most products
a. True b. False Indicate whether the statement is true or false