Solved

Assume That the Consumer Is Correctly Applying the Rational Spending

Question 56

Multiple Choice

Assume that the consumer is correctly applying the rational spending rule for normal goods X and Z.If the consumer's income increases,purchases of both X and Z rise because


A) the marginal utility of X decreases.
B) the price of Z falls.
C) the marginal utility of Z decreases.
D) combinations of X and Z that could not be considered before are now available.
E) the price of X increases.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents