Author Question: Suppose a consumer buys only food and clothing. If the quantity of food bought decreases while that ... (Read 46 times)

captainjonesify · **on:** Jun 30, 2018

Suppose a consumer buys only food and clothing. If the quantity of food bought decreases while that of clothing remains the same, their marginal utility from food will:
a. fall relative to the marginal utility of clothing.
b. rise relative to the marginal utility of clothing.
c. rise, but not as fast as their marginal utility of clothing rises.
d. fall, but not as fast as their marginal utility of clothing falls.

Question 2

The resource market comprises of households and firms where the firms sell their resources to the households.
a. True
b. False
Indicate whether the statement is true or false