Which of the Following Statements Is True

question 98

Multiple Choice

Which of the following statements is true?

• A)Marginal utility theory predicts that an increase in a consumer's income increases consumption of all goods.
• B)It is possible to derive the law of demand - that a higher price decreases the quantity demanded - using marginal utility theory.
• C)Marginal utility theory makes no prediction about a consumer's responses to hikes in the prices of the goods and services he or she consumes.
• D)Marginal utility theory predicts that all goods are normal goods and that all goods are substitutes for each other.
• E)It is possible to derive the law of demand - that a higher price decreases demand - using marginal utility theory.

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Definitions:

Clarification

The process of making something clearer or easier to understand, often by providing more details or information.

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A technique of restating another's message or content in one's own words, commonly used to demonstrate understanding or to provide clarity.

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The ways in which a listener communicates their attention, understanding, and empathy to the speaker.

Summarizing

The process of concisely restating the main points of information or a conversation.