The Table Below Shows the Total Utility Associated with Various

question 73

Multiple Choice

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

-The demand curve for a product slopes downward and to the right because:

• A)total utility decreases as more of the product is consumed.
• B)total utility derived from both, the product and its substitutes is the same.
• C)marginal utility of the product diminishes as more of the product is consumed.
• D)there are no substitutes for the product.
• E)when the price falls, the income effect causes consumers to buy less of the product.

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Definitions:

Heuristics

Problem-solving strategies that use a practical approach or shortcuts to produce solutions that are not perfect but sufficient for the immediate goals.

Transductive Reasoning

A type of thinking commonly seen in early childhood where the child makes connections between unrelated events.

Cause-Effect Relationships

The principle of causality that establishes the relationship between something that happens (the cause) and the thing that happens as a result (the effect).

Precausal Thinking

A type of logic in young children characterized by a lack of understanding of cause-and-effect relationships.