Which of the following is the best example of a marginal change?
A)After graduating from university, 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% when a new highway is built in a small town.
D)A hard freeze wipes out half of the tobacco crop in Ontario and the price of cigarettes doubles.

Question

Quizplus · Accepted Answer

A marginal change refers to a small, incremental change that occurs in response to a small change in a variable. Option B is the best example of a marginal change, as Morgan's hourly wage increases only by 25 cents. Option A is not a marginal change, as the increase in Audrey's income is too significant to be considered small or incremental. Option C is not a marginal change, as the 40% increase in housing prices is a significant change and is likely to have a significant impact on the local economy. Option D is not a marginal change, as the doubling of cigarette prices is a significant change that is likely to have a significant impact on the tobacco industry and on consumers who purchase cigarettes.

Which of the Following Is the Best Example of a Marginal