QUESTION 1 Which of the following is descriptive of the law of diminishing margi

Question

QUESTION 1 Which of the following is descriptive of the law of diminishing marginal utility? O a. The third hamburger tastes better than the first hamburger. b. The third hamburger is priced higher than the first hamburger. c. As price falls, quantity demanded rises, ceteris paribus. d. Things get more expensive as costs rise. e.none of the above QUESTION 2 Exhibit 3-7 Quantity of Good X Refer to Exhibit 3-7. If S 1 is the relevant supply curve, a decrease in the price of a resource that is necessary for the production of good X causes o a. the supply of good X to shift from S1 to S3 b. a movement along S1 perhaps from point A to point C c. the supply of good X to shift from S1 to S2 d. no change in the supply of good X e. a movement along S1 perhaps from point A to point B

Explanation / Answer

Ans 1) E is the correct option.none of the above. law of diminishing marginal utility states as consumers consume more of a good its marginal utility decreases which is derived from derives from consuming each additional unit of that product.

Ans2) C is the correct option. The supply of good X to shift from S1 to S2. since the price of the resource used for the production of good X decreases, the cost of producing good X also decrease meaning the supply increases and shift to the right from S1 to S2

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.