If an Individual's Demand Is Elastic and Price Increases, What

question 9

Multiple Choice

If an individual's demand is elastic and price increases, what happens to total utility (TU) , marginal utility (MU) , consumer surplus (CS) , and total expenditure (TE) ?

• A)TU increases, MU decreases, CS decreases, and TE decreases
• B)TU increases, MU increases, CS increases, and TE decreases
• C)TU decreases, MU increases, CS decreases, and TE increases
• D)TU decreases, MU decreases, CS decreases, and TE decreases
• E)TU decreases, MU increases, CS decreases, and TE decreases

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Definitions:

Year

A period of time consisting of 365 or 366 days, divided into 12 months, used for calculating time according to the Gregorian calendar.

Texas

A state located in the southern region of the United States, known for its large size, diverse population, and significant cultural and economic contributions.

Official Reporter

A published volume of court decisions compiled as an authoritative source for legal precedents.

New Jersey

A state in the northeastern U.S., known for its significant role in American history, Atlantic Coast beaches, and as a center of commerce and industry.