Katie Just Finished a Bottle of Coke

question 67

Multiple Choice

Katie just finished a bottle of Coke.Using the concept of marginal utility,we can say:

• A)the utility she will gain if she drinks another will reduce her total utility.
• B)the utility she will gain if she drinks another might reduce her total utility.
• C)the utility she will gain if she drinks another will be the same as that of her first.
• D)None of these is necessarily true.

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Definitions:

Cross-Price Elasticity

A measure in economics that shows how the quantity demanded of one good responds to a change in the price of another good.

Cross-Price Elasticity of Demand

An indicator of how the demand for one product shifts following a change in the cost of a separate product.

Midpoint Method

A technique used in economics to calculate the elasticity of demand or supply between two points on a curve, which averages percentages of change in quantity and price.

Price Elasticity of Supply

The measure of how the supply quantity of a product is affected by changes in its price is known as the price elasticity of supply.