Author Question: Using marginal utility theory, when the price of a gallon of milk falls, a consumer will buy A) ... (Read 29 times)

urbanoutfitters · **on:** Jun 29, 2018

Using marginal utility theory, when the price of a gallon of milk falls, a consumer will buy

A) the same amount of milk as before and buy more of all other goods.
B) more milk.
C) more milk only if its marginal utility is increasing.
D) more milk only if its marginal utility is constant.

Question 2

In the United States, the Lorenz curve for wealth is ________ from the 45-degree line than is the Lorenz curve for income, which means that the distribution of wealth is more ________ than the distribution of income.

A) farther away from; unequal
B) farther away from; equal
C) closer to; unequal
D) closer to; equal