« previous next »

Author Question: Bianca consumes pizza. Marginal utility theory predicts that when the price of pizza increases A) ... (Read 125 times)

dejastew

  • Hero Member
  • *****
  • Posts: 562
on: Jun 29, 2018
Bianca consumes pizza. Marginal utility theory predicts that when the price of pizza increases
 
  A) Bianca's total utility from pizza will increase.
  B) Bianca will buy less pizza.
  C) Bianca's marginal utility from pizza will increase.
  D) Bianca's demand curve for pizza will shift leftward.

Question 2

Teddy buys only chocolate chip cookies and hot chocolate and spends all of his income on the two items. Suppose the price of a cookie rises. According to marginal utility theory, Teddy will buy
 
  A) more cookies and less hot chocolate, which decreases his marginal utility from cookies and increases his marginal utility from hot chocolate.
  B) more cookies and less hot chocolate, which increases his marginal utility from cookies and decrease his marginal utility from hot chocolate.
  C) fewer cookies and more hot chocolate, which decreases his marginal utility from cookies and increases his marginal utility from hot chocolate.
  D) fewer cookies and more hot chocolate, which increases his marginal utility from cookies and decreases his marginal utility from hot chocolate.


TINA

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Common ancestry predicts where we should find vestigial limbs Common ancestry predicts where we should find vestigial limbs
Graph showing how the boiling point of the coolant increases as the percentage of antifreeze in ... Graph showing how the boiling point of the coolant increases as the percentage of antifreeze in ...
Gate control theory. A. open gate, B. closed gate Gate control theory. A. open gate, B. closed gate
Psychodynamic Theory Psychodynamic Theory
Activation Synthesis Theory of Dreams Activation Synthesis Theory of Dreams
Video: Non-polar compounds - insolubility

For a complete list of videos, visit our video library