Which of the following is the best example of a marginal change?
A)After graduating from university, Neville's income increases from $1,000 per month to $1,100 per month.
B)Marliss is granted a raise at her part-time job and is now paid $8.25 per hour instead of $8.00.
C)Housing prices in an area increase by 50% when a new freeway is built in a small town.
D)A hard freeze wipes out half of the potato crop in Prince Edward Island and the price of potatoes doubles.

Question

Quizplus · Accepted Answer

A marginal change refers to a small incremental adjustment in a variable. In this case, a 25 cent increase in Marliss's hourly pay constitutes a marginal change. Option A involves a significant increase in Neville's monthly income, and option C involves a large percentage increase in housing prices, which are not marginal changes. Option D involves a large change in potato prices due to external factors, which is not a marginal change.

Which of the Following Is the Best Example of a Marginal