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:

Sharing Economy

An economic system in which assets or services are shared between private individuals, either free or for a fee, typically by means of the Internet.

Peer-To-Peer

A communications model that is decentralized, where every participant has equal capabilities, and both parties can start a communication session.

Rent

Payment made periodically by a lessee to a lessor for the use of premises or other property.

Intangibility

A characteristic of services that implies they cannot be seen, touched, or physically measured.