Marginal utility analysis predicts a downward-sloping demand curve for good X because... a. As PX rises, the consumer increases purchases of X such that MUX/PX is equal to MU/P for all other products. b. As PX falls, the ratio MUX/PX becomes smaller, causing the consumer to purchase more of good X. c. As PX falls, the consumer increases purchases of X until MUX/PX is equal to MU/P for all other products. d. Utility-maximising consumers equate the marginal utility received for each product consumed. e. All demand curves are downward sloping, regardless of the behaviour of consumers.
Marginal utility analysis predicts a downward-sloping demand curve for good X because... a. As PX rises, the consumer increases purchases of X such that MUX/PX is equal to MU/P for all other products. b. As PX falls, the ratio MUX/PX becomes smaller, causing the consumer to purchase more of good X. c. As PX falls, the consumer increases purchases of X until MUX/PX is equal to MU/P for all other products. d. Utility-maximising consumers equate the marginal utility received for each product consumed. e. All demand curves are downward sloping, regardless of the behaviour of consumers.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Q50
a.
As PX rises, the consumer increases purchases of X such that MUX/PX is equal to MU/P for all other products.
b.
As PX falls, the ratio MUX/PX becomes smaller, causing the consumer to purchase more of good X.
c.
As PX falls, the consumer increases purchases of X until MUX/PX is equal to MU/P for all other products.
d.
Utility-maximising consumers equate the marginal utility received for each product consumed.
e.
All demand curves are downward sloping, regardless of the behaviour of consumers.
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