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Unformatted text preview: a. had constant total utility. b. had negative marginal utility. c. had constant marginal utility. d. had positive marginal utility. 8 If an inferior good you are consuming has its price increase, you will buy less of it because: a. the negative income and substitution effects work together. b. the negative income effect is smaller than the positive substitution effect. c. the positive income effect is larger than and the negative substitution effect. d. the positive income and substitution effects work together. 9 Total utility: a. always increases as a person consumes more and more of a good. b. is equal to the sum of the marginal utilities of all units consumed. c. is negative when marginal utility is declining. 2 Chapter 4 Review Questions d. has a constant rate of increase as a person consumes more and more of a good. 1. A 2. A 3. D 4. C 5. D 6. D 7. B 8. B 9. B 3...
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This note was uploaded on 01/22/2012 for the course ECO 3041 taught by Professor Dacal during the Fall '11 term at FIU.
- Fall '11