Mario consumes two goods: cars and motorbikes. An increase in the price of cars while holding income and the price of motorbikes constant will: (A) increase the marginal utility provided by cars. B) decrease the marginal utility per dollar spent on cars. (C) reduce the individual's preference for cars. D increase the marginal utility per dollar spent on motorbikes

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter10: Consumer Choice Theory
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Mario consumes two goods: cars and motorbikes. An increase in the price of cars while holding income and the price of motorbikes constant will:

(A) increase the marginal utility provided by cars.

B) decrease the marginal utility per dollar spent on cars.

(C) reduce the individual's preference for cars.

D increase the marginal utility per dollar spent on motorbikes

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