Harold spends his income and buys the quantities of apples and oranges that maximize his total utility. If the price of an orange rises while his income remains the same, how does marginal utility theory predict Harold will respond to the price rise?
Marginal utility theory predicts that Harold's

Question

Harold spends his income and buys the quantities of apples and oranges that maximize his total utility. If the price of an orange rises while his income remains the same, how does marginal utility theory predict Harold will respond to the price rise? 
 Marginal utility theory predicts that Harold's

Answer

demand for oranges decreases and his demand for apples decreases.

Answer

quantity demanded of oranges increases along his demand curve and his demand for apples decreases.

Answer

quantity demanded of oranges decreases along his demand curve and his demand for apples might increase or decrease.

Answer

demand for oranges decreases and his quantity demanded of apples increases.

Answer

quantity demanded of oranges decreases along his demand curve and his quantity demanded of apples increases.

Crowdly

Harold spends his income and buys the quantities of apples and oranges that maxi...

Want instant access to all verified answers on moodle.uleth.ca?