As Price Falls Along a Given Demand Curve for Pretzels

question 13

Multiple Choice

As price falls along a given demand curve for pretzels,

• A)quantity demanded, total utility, marginal utility, and consumer surplus increase; consumer expenditure decreases
• B)quantity demanded, total utility, and consumer surplus increase; marginal utility and consumer surplus decrease
• C)quantity demanded, total utility, consumer surplus, and consumer expenditure increase; marginal utility decreases
• D)quantity demanded, total utility, and consumer surplus increase; marginal utility decreases; consumer expenditure might increase, decrease, or remain constant
• E)quantity demanded, total utility, marginal utility, consumer surplus, and consumer expenditure all increase

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Definitions:

New York Federal Reserve Bank

A regional bank part of the Federal Reserve System, playing a key role in monitoring and executing monetary policy in the United States.