Author Question: The equilibrium quantity of a good will increase and its equilibrium price might rise, fall, or stay ... (Read 225 times)

chads108 · **on:** Jun 29, 2018

The equilibrium quantity of a good will increase and its equilibrium price might rise, fall, or stay the same when

A) its demand and supply both increase.
B) its demand increases and supply decreases.
C) its demand decreases and supply increases.
D) its demand and supply both decrease.

Question 2

Diminishing marginal utility of wealth leads to risk aversion because at a given level of wealth a dollar gained

A) is worth more in additional utility than a dollar lost.
B) is worth less in additional utility than a dollar lost.
C) is worth as much in additional utility as a dollar lost.
D) does not add to total utility.