Marginal Utility Theory Predicts That When the Price of One

question 291

Multiple Choice

Marginal utility theory predicts that when the price of one good rises, the demand for another good is a substitute increases. This change occurs because of

• A) an increase in the marginal utility per dollar from the substitute good.
• B) an increase in the marginal utility of the substitute good.
• C) a decrease in the marginal utility per dollar from the good whose price has risen.
• D) a decrease in the marginal utility of the good whose price has risen.

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Definitions:

Prescribes

The act of recommending or advising a specific course of action or type of medication by a qualified professional.

Physician-Assisted Suicide

A form of active euthanasia in which a doctor provides the means for someone to end his or her own life, usually by prescribing lethal drugs.

Euthanasia

The practice of intentionally ending a life to relieve pain and suffering, often in the context of terminal illness.

Slippery Slope

A logical fallacy or argument that suggests a small action will lead to a chain of events resulting in a significant and often negative outcome.