Which of the Following Statements Is TRUE

question 264

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.

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