NorthWest Arkansas Comm Disaussions: Prin of Microe+Y aplinglearning.com/bisms/m

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NorthWest Arkansas Comm Disaussions: Prin of Microe+Y aplinglearning.com/bisms/mod/ibis/view.php?id-5698830 Jump to... apling Learning Classity each of the statements below as true or false by placing them into the correct bin False True Numerical utility values are Diminishing marginal utility means that relatively easy to calculate.consumption of an additional unit decreases utility Marginal utility is the extra satisfaction experienced by one additional unit of consumption. Utity is a measure of the satisfaction It you eat a slice of pizzaMarginal utility is always negative that gives you food poisoning, your utility wil likely decrease people receive from their choices. Hnt

Explanation / Answer

F. point 'A' to 'D'.

a. When the income increases the budget line will shift upward, for an inferior good when the income increases the quantity demanded will decrease. For a normal good the quantity will increase so the at the point 'D' on the second demand curve the quantity of pepsi is higher and pepper is lower.

b. Point 'A' to 'F'.

If the pepper is the normal good when the income increases he consumes more of the pepper and for the inferior good he consumes less of it.  

TRUE FALSE

• Diminishing marginal utility means consumption of an additional unit decreases utility.

• Marginal utility is always positive.

• Numerical utility values are relatively easy to calculate.

• Marginal utility is always neagtive.

• Marginal utility is the extra satisfaction experienced by an additional unit of consumption.

• If you eat a slice of pizza that gives you food poisoning. Your utility will likely to decrease.

• Utility is a measure of satisfaction people receive from their choices.  

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