If the price of a good rises,then in the new consumer equilibrium all of the following are true except
A)the marginal utility from consuming the good will be higher than before the price rise.
B)the quantity of the good consumed decreases.
C)the quantity of substitutes consumed increases.
D)the marginal utility from substitutes will be lower than before the price rise.
E)the marginal utility from the good equals its new higher price.

Question

Quizplus · Accepted Answer

In consumer equilibrium, the marginal utility per dollar spent on each good should be equal. If the price of a good rises, the marginal utility from the good should equal the new price, not necessarily be higher.

If the Price of a Good Rises,then in the New