EduFarming
Your list · 0हिं

Type at least two letters. Press Esc to close.

↑↓ navigate↵ openTAB cycle filter

Utility & Consumer's Equilibrium · Question 48 of 73

Question 48

MediumOriginal question

Read the two statements and choose the correct option.

I. A rise in the price of a good lowers the quantity a consumer buys in one-good equilibrium.

II. A rise in the price of a good raises the marginal utility of each unit.

Options for question 48

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. I is true: with a higher price he stops at an earlier unit, where MU is higher.

  2. II is false: price does not change the utility a unit gives.

Concept
Price and the one-good equilibrium
Typical time
70 s
Your time
—
The rule this testsEquilibrium with one good
Practise this chapter →

Ten questions from Utility & Consumer's Equilibrium, at your own pace.

Practise this chapter →

Ten questions from Utility & Consumer's Equilibrium, at your own pace.

Practise this chapterAll 73 questions in Utility & Consumer's EquilibriumRevise the notes for Utility & Consumer's Equilibrium