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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