Higher Prices

question 30

Multiple Choice

Higher prices

• A) lower the marginal utility per dollar spent and cause consumers to buy less of a good.
• B) increase the marginal utility per dollar spent and cause consumers to buy less of a good.
• C) do not change the marginal utility per dollar.
• D) lower the marginal utility per dollar spent and cause consumers to buy more of a good.
• E) increase the marginal utility per dollar spent and cause consumers to buy more of a good.

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Definitions:

Hats

A headwear item designed for various purposes including protection from weather, ceremonial reasons, religious reasons, safety, or fashion.

Production

The method of integrating different physical and non-physical inputs, such as materials and ideas, to produce goods for use.

Opportunity Costs

Missing out on potential benefits from various options due to the selection of a single alternative.

Trade

The practice, in a market economy, in which individuals provide goods and services to others and receive goods and services in return.