The Predictions of Marginal Utility Theory

question 27

Multiple Choice

The predictions of marginal utility theory

• A) contradict the idea that the demand curve slopes downward.
• B) support the idea that the demand curve slopes downward.
• C) support the idea that the supply curve slopes upward.
• D) contradict the idea that the supply curve slopes upward.

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Definitions:

Compliance

Acting in accordance with the direct requests of other people.

Obedience

Behaving in accordance with the rules and commands of those in authority.

Halo Effect

A cognitive bias where the perception of a particular trait is influenced by the perception of former traits in a sequence of interpretations.

Reciprocal Liking

The phenomena where people tend to like others who like them in return.