The Table Below Shows the Total Utility Associated with Various

question 101

Multiple Choice

The table below shows the total utility associated with various units of goods X and Y.Table 7.5

-The demand curve slopes downward because of:

• A)diminishing marginal utility and consumer equilibrium.
• B)the fact that consumers cannot decide how much they want to pay for goods and services.
• C)the fact that suppliers cannot decide how much to charge for the goods and services they supply.
• D)the fact that consumer tastes and preferences change rapidly.
• E)the fact that consumers are fickle, which makes pricing a good or service very difficult.

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Definitions:

Slope of the Budget Line

The rate at which one good can be traded for another, reflecting the relative prices of two goods.

Standard Deviation

An indicator that calculates how much a group of figures deviates or scatters from each other.

Risky Asset

An asset that carries a significant degree of risk of losing value, but also offers the potential for higher returns as compared to safer investments.

Rate of Return

The increase or decrease in the value of an investment during a set timeframe, represented as a percentage of the investment's starting price.