Exhibit 6-6 Marginal Utility for Data for Clothes and Amusement

question 86

Multiple Choice

Exhibit 6-6 Marginal utility for data for clothes and amusement

Refer to Exhibit 6-6. Your budget is $50. The price of amusement goods is $10. If the price of clothes falls to $4, which of the following statements is true ?

• A) The marginal-utility-to-price ratio for clothes will decrease.
• B) The marginal-utility-to-price ratio for clothes will increase.
• C) The quantity demanded of clothes will decrease.
• D) The quantity demanded for amusement goods will remain constant.

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Definitions:

Anti-democratic

Referring to principles, actions, or ideologies that oppose democracy, which is a system of government where power is vested in the hands of the people, often through elected representatives.

Elitist

Pertaining to a belief or attitude that a select group of people with a certain ancestry, intrinsic quality, high intellect, wealth, or who have specific, desirable affiliations are entitled to lead or enjoy special status.

Anti-democratic

Opposed to democratic principles, often favoring centralized control or leadership without the same level of input or influence from the general population.

Upper-management Levels

The highest tier in an organization's management hierarchy, responsible for strategic decision-making and company-wide policy setting.