When the Price of a Commodity Falls, We Can Expect

question 9

Multiple Choice

When the price of a commodity falls, we can expect

• A)total utility will fall.
• B)marginal utility of the last unit purchased will fall.
• C)marginal utility of the last unit purchased will rise.
• D)purchases will fall because of a change in marginal utility.

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Definitions:

State Of Mind

An individual's mental and emotional condition at a particular time, influencing perception, behavior, and decision-making.

Current Circumstances

The existing situation, conditions, or context at the present moment.

Human Condition

Refers to the range of key experiences, emotions, and challenges that define human existence and encompass aspects such as birth, growth, emotionality, aspiration, conflict, and mortality.

Preoccupation

The state of being absorbed or engrossed in thoughts or concerns, often leading to a lack of awareness of one’s surroundings or the task at hand.