If the Price of Swimming Pools Decreases, We Would Expect

question 64

Multiple Choice

If the price of swimming pools decreases, we would expect the demand for:

• A) tennis courts, a substitute good, to increase.
• B) chlorine, a complement good, to increase.
• C) swimming pools to increase.
• D) swimming pools to decrease.

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Definitions:

Income Function

A mathematical representation that shows the relationship between an individual's or entity's income and one or more variables, such as the level of education or experience.

Diminishing Marginal Utility

Principle that as more of a good is consumed, the consumption of additional amounts will yield smaller additions to utility.

Utility Of Income

The perceived value or satisfaction that an individual gains from receiving a certain amount of income.

Income Function

A mathematical representation that shows how an individual's or firm's income changes in relation to other factors, such as labor or capital investment.