Answer:
consumption of tea will <u>increase</u> , and marginal utility of coffee will <u>increase</u>
Explanation:
As Consumer consumes both tea & coffee, they are substitutes goods (which can be inter change-ably used by consumer).
Substitute Goods' price & quantity are inversely related. Such because -
- Price fall of a good makes it relatively cheaper & increases its quantity demanded, decreases other good's demand.
- Price fall of a good makes it relatively expensive & decreases its quantity demanded, increases other good's demand
So: Tea & Coffee being substitutes - If price of coffee rise, its own quantity demanded decreases & tea demand increases.
Coffee quantity demanded decrease means Marginal Utility of coffee will increase, as - MU decreases with more consumption quantity & it increases with less quantity consumption [as per Law of Diminishing Marginal Utility].
He deals with them by borrowing the money. hope i helped :)
His home state is Virginia, US (:
Answer:
The study of economics helps people understand the world around them. It enables people to understand people, businesses, markets and governments, and therefore better respond to the threats and opportunities that emerge when things change.
