An Individual Buys More of a Good at Lower Prices

question 163

Multiple Choice

An individual buys more of a good at lower prices than at higher prices because

• A)at lower prices, total utility is greater than price.
• B)at lower prices, marginal benefit is greater than price over a greater quantity of the good than at higher prices.
• C)at lower prices, marginal utility is greater than price over a greater quantity of the good than at higher prices.
• D)marginal benefit increases.
• E)marginal benefit falls more slowly than price.

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Definitions:

Wolfgang Köhler

A German psychologist, one of the founders of Gestalt psychology, which emphasizes the human capacity to perceive patterns in the visual world.

Native Language

The first language a person learns at home in childhood and is usually fluent in; also referred to as mother tongue or first language.

Language Development

The method through which young children grasp and express language in the initial stages of their childhood.

Two-word Stage

A phase in early language development during which children begin to use two-word sentences to communicate their desires, thoughts, and feelings.