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Use the following to answer question:
Figure 2.6
-(Figure 2.6) Suppose that the demand curve in both markets shifts out by the same distance. The change in price will be larger in _____, and the change in quantity will be larger in _____.
Staples
Basic or essential food items and products that are consumed regularly and necessary for daily living.
Paper Clips
Small pieces of bent wire or plastic used for holding sheets of paper together.
Utility-Maximizing
The process by which individuals choose consumption bundles that will give them the greatest amount of satisfaction or utility.
Diminishing Marginal Utility
The decrease in satisfaction or usefulness as additional units of a product are consumed.
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