This topic contains a solution. Click here to go to the answer

Author Question: Marginal utility theory predicts that when the price of one good rises, the demand for another good ... (Read 193 times)

asmith134

  • Hero Member
  • *****
  • Posts: 576
Marginal utility theory predicts that when the price of one good rises, the demand for another good is a substitute increases. This change occurs because of
 
  A) an increase in the marginal utility per dollar from the substitute good.
  B) an increase in the marginal utility of the substitute good.
  C) a decrease in the marginal utility per dollar from the good whose price has risen.
  D) a decrease in the marginal utility of the good whose price has risen.

Question 2

What effect does an increase in the interest rate have on the opportunity cost of holding money and on the demand for money curve?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jessicaduplan

  • Sr. Member
  • ****
  • Posts: 337
Answer to Question 1

C

Answer to Question 2

An increase in the interest rate increases the opportunity cost of holding money. There is a movement upward along the demand for money curve.




asmith134

  • Member
  • Posts: 576
Reply 2 on: Jun 29, 2018
:D TYSM


strudel15

  • Member
  • Posts: 324
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

For a complete list of videos, visit our video library