If the Price of Product X Rises, Then the Resulting

question 140

Multiple Choice

If the price of product X rises, then the resulting decline in the amount purchased will

• A)necessarily increase the consumer's total utility from his total purchases.
• B)increase the marginal utility of the last unit consumed of this good.
• C)increase the total utility from purchases of this good.
• D)reduce the marginal utility of the last unit consumed of this good.

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Definitions:

Many Firms

A market situation where there are a large number of sellers, offering a variety of products.

Profit-Maximizing Quantity

The point of production where a firm reaches its maximum profit potential.

Panel

A group of individuals or experts gathered to discuss, analyze, or make decisions on specific subjects.

Intersection

The point at which two lines or paths cross each other.