What is the best example of a marginal change?
A) College tuition rose by 5% last year.
B) Yao gets a big promotion at work. He also gets a raise from $50,000 per year to $80,000 per year.
C) Rory graduates from university and takes a job. His income increases from $10,000 per year to $50,000 per year.
D) A drought hits Alberta and the price of corn increases from $4.00 per bushel to $6.00 per bushel.

Question

Quizplus · Accepted Answer

A marginal change refers to a small, incremental adjustment to an existing plan of action. The 5% increase in college tuition is a small, incremental change, fitting the definition of a marginal change. Choices B and C involve significant changes, and D, while it involves a price change, is more about market conditions than a planned, incremental adjustment.

What Is the Best Example of a Marginal Change