The conventional demand curve appears strange to many students since the dependent variable (quantity) is on the vertical axis and the independent variable (price) is on the horizontal axis. We generally describe our demand as "If apples cost $1, then I'd be willing to buy four apples" instead of "If I want four apples, then I'd be willing to pay $1 per apple." Which concept reframes the dependent and independent variables so the orientation is more intuitive?
A) diminishing marginal utility
B) indifference curve
C) budget constraint
D) marginal rate of substitution
Correct Answer:
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Q1: Use the following to answer questions:
Figure: Water
Q4: If the price of cantaloupe increases, the
Q5: Constant marginal utility means that marginal utility
Q6: Amy purchased four cantaloupes at $2 each
Q7: Use the following to answer questions:
Figure: Water
Q8: Which best illustrates the concept of diminishing
Q9: By assuming diminishing marginal utility, we mean
Q10: Everyone should shop at _ because they
Q11: Use the following to answer question 13:
Figure:
Q17: Consumers maximize their utility when:
A) the total
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