Marginal Utility Theory Concludes That a Decrease in the Price

question 41

Multiple Choice

Marginal utility theory concludes that a decrease in the price of a good increases the quantity demanded and

• A) increases the demand for substitutes.
• B) decreases the demand for complements.
• C) increases the total expenditure on the good.
• D) increases total utility.

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Definitions:

Chronological Order

The arrangement of events in the order they occurred in time.

Latency

Latency refers to the delay or period of inactivity between a stimulus and its corresponding response.

Harmony

A pleasing combination or arrangement of different things, often referring to a state of agreement or tranquility.

Dominate

To have control or power over; to be the most influential factor in.