If the Price of Cantaloupe Increases, the Marginal Utility Per

question 104

Multiple Choice

If the price of cantaloupe increases, the marginal utility per dollar of cantaloupe:

• A) decreases, so the consumer buys fewer cantaloupes, and the demand curve for cantaloupes slopes downward.
• B) increases, so the consumer buys more cantaloupes, and the demand curve for cantaloupes slopes downward.
• C) increases, so the consumer buys fewer cantaloupes, and the demand curve for cantaloupes slopes downward.
• D) decreases, so the consumer buys fewer cantaloupes, and the demand curve for cantaloupes slopes upward.

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Definitions:

Null Hypothesis

An assumption made for statistical testing that indicates no effect or no difference, used as a basis for comparison.

Test Statistic

A value calculated from sample data during hypothesis testing. It is used to decide whether to reject the null hypothesis.

Population Mean

The average value of a set of characteristics for an entire population.

Alpha

A threshold value in hypothesis testing that determines the level of significance, usually set to 0.05 or 0.01.