When the Price of a Good Falls,the Ratio of the Marginal

question 23

Multiple Choice

When the price of a good falls,the ratio of the marginal utility of that good divided by its price ________ and as a result,consumers purchase ________ of that good.

• A) rises; more
• B) falls; more
• C) rises; less
• D) falls; less

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Definitions:

Financial Asset

Any asset that is cash, an equity instrument of another entity, or a contractual right to receive cash or another financial asset.

Contractual Rights

Rights granted to an individual or entity based on the terms of a contract.

Derecognition

The process of removing a financial asset or liability from a company's financial statements, usually because it has been sold, repaid, or no longer meets the criteria for recognition.

Financial Liability

An obligation to transfer cash or other resources as a result of past transactions or events.