If the Price of a Good Increases,the Marginal Utility Per

question 87

Multiple Choice

If the price of a good increases,the marginal utility per dollar spent ________ and consumers buy ________ of the good.

• A) remains the same; more
• B) remains the same; less
• C) decreases; more
• D) decreases; less
• E) increases; more

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Definitions:

Market Price

The current price at which a security or commodity is bought or sold in the market.

Rights Offering

A method by which a company raises capital by giving existing shareholders the right to buy additional shares directly from the company at a discounted price before the new shares are offered to the public.

Market Price

The market's current rate for purchasing or selling an asset or service.