If your demand for a good is ________, then a 1 percent fall in ...

[tuffie]

If your demand for a good is ________, then a 1 percent fall in its price will lead you to ________ your expenditures on the good.
 
  A) inelastic; increase
  B) inelastic; decrease
  C) elastic; increase
  D) elastic; decrease

Question 2

Which of the following is consistent with the assumptions of marginal utility theory?
 
  A) As Jose consumes more of one good, his marginal utility from consuming more of that good decreases.
  B) As Jose consumes more of one good, his marginal utility from consuming more of that good increases.
  C) As Jose consumes more of one good, his marginal utility from consuming more of all goods decreases.
  D) As Jose consumes more of one good, his marginal utility from consuming more of all good increases.

[srodz]

Answer to Question 1

D

Answer to Question 2

A

[tuffie]

YES! Correct, THANKS for helping me on my review

[alexanderhamilton]

Wow, this really help