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Blackb QUESTION TO s illustrates O a An extra dollar of income to a poor person

ID: 1127903 • Letter: B

Question

Blackb QUESTION TO s illustrates O a An extra dollar of income to a poor person provides that person with the same tot O b.An extra dollar of income to a poor person provides that person with less O c An extra dollar of income to a poor person provides that person with the same o d An extra dollar of income to a poor person provides that person with more additional utility than does an extra dollar to a rich persorn to a rich person adtional uitiy than does an exra dolur to a rich person additional veility as does an extra dollar to a rich person QUESTION 71 1 points Sas Josh is currenily consuming some of good X and some of good Y If good Y is a nomal good for Josh an Increase in his income will definitely cause him to b increase his c of x o d decrease his consumption of X Remaining Time: 1 hour, 12 minutes, 19 QUESTION 72 Figure 21-1 a E only b A, B, C or D only c B. C, or D only

Explanation / Answer

Answer.)

Q70.) b.) An extra dollar of income to a poor person provides that person with less additional utility than does an extra dollar to a rich person.

The law of diminishing marginal utility states that, as a consumer consumes more and more units of a specific commodity, the utility from the successive units goes on diminishing.

Q71.) a.) Increase his consumption of Y

Normal goods have positive income elasticity.

Q72.) c.) B, C or D only.