Which of the Following Statements Is Correct

question 44

Multiple Choice

Which of the following statements is correct?

• A)The "law" of diminishing marginal utility implies that demand curves slope upward and to the right.
• B)If the price of a good falls, the utility-maximizing consumer will assure that marginal utility rises.
• C)If the price of a good falls, the consumer will purchase more of the good in order to maximize total utility.
• D)MU and demand have different underlying consumer behavior assumptions.

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Definitions:

Weekly Wage

The total amount of money paid to an employee for work done in a single week.

University

A higher learning and research establishment that grants various academic qualifications across multiple fields of study.

Labor Supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor workers are willing to provide, typically upward sloping indicating that higher wages incentivize more labor.

Marginal Cost

The financial increase required to produce one more unit of a good or service.