Which of the following is the best example of a marginal change?
A)After graduating college, Audrey's income increases from $500 per month to $3,000 per month.
B)Morgan gets a raise at her part-time job and is now paid $7.25 per hour instead of $7.00.
C)Housing prices in an area increase by 40 percent when a new interstate is built that passes nearby.
D)A hard freeze wipes out half of the orange crop in Florida and the price of orange juice doubles.

Question

Quizplus · Accepted Answer

A marginal change is a small, incremental change that results from altering one small aspect of a larger system. Option B represents a small increase in hourly wage, which is a marginal change. The other options represent significant changes (A and D) or changes that affect an entire system (C), which are not considered marginal changes.

Which of the Following Is the Best Example of a Marginal