If the Price of Chicken Rises from $1

question 164

Multiple Choice

If the price of chicken rises from $1.25 per pound to $1.75 per pound, and the quantity demanded goes from 250 pounds per day to 175 pounds per day, this illustrates

• A)the law of diminishing returns.
• B)the law of supply.
• C)the law of demand.
• D)the law of supply and demand.

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Definitions:

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer derives from purchasing one more unit of a good or service.

Marginal Utility

The additional satisfaction or utility received from consuming one more unit of a good or service.

Demand Schedule

A demand schedule is a table that lists the quantity of a good that consumers are willing to purchase at various prices.

Total Utility

The overall satisfaction or benefit a consumer receives from consuming a certain quantity of a good or service.