Suppose Lorna Buys More Sweaters Even If the Price of Sweaters

question 178

Multiple Choice

Suppose Lorna buys more sweaters even if the price of sweaters rises.Other things constant,she is acting contrary to the law of _____

• A)equi-marginal utility.
• B)increasing costs.
• C)one price.
• D)diminishing costs.
• E)demand.

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Definitions:

Face Value

The original value of a financial instrument as stated on the instrument itself.

Compounded Annually

Interest calculation method where the interest amount is added to the principal at the end of each year, and the total becomes the principal for the next year.

Annual Deposits

Regular sums of money deposited into an account or investment annually.

Equal Annual Withdrawals

Regular, identical amounts of money withdrawn from an investment or savings account over a designated period.