Consumers always try to equate marginal utility of a good to its price which is a marginal cost of consumption.
<h3>What is marginal utility and why consumers make a choice by looking at both mu and price?</h3>
- So economically a utility is a kind of benefit that a consumer gets by buying a product of choice.
- Now marginal utility is the benefit one gets by buying an additional unit of consumption except the first product bought.
- Here the question is asked about the consumer taking notice of both marginal utility and price while buying goods.
- Hence consumers watch for the marginal utility and price of the good both to equate the marginal utility to its price which is a marginal cost of consumption.
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Answer:
D. Consumption by $80 billion.
Explanation:
Marginal propensity to Save = 1 / MPS
= 1 / 0.2
= 5
= $20 billion × 5
= $100 billion
= $100 - $20
= $80 billion
Therefore, a $20 billion rise in investment spending will increase consumption by $80 billion.
How to copy and paste and be creative
Answer:
The correct word for the blank space is: relationship.
Explanation:
Relationship selling refers to the connection salespeople try to create with clients in an attempt to engage them with the brand looking forward to having the same customers to consume more products. Implementing this approach requires salespeople to be in touch whit clients periodically to find out if the goods they purchased fulfilled their expectations or if there is something additional the clerk could offer them.
Relationship selling allows salespeople to create their <em>client portfolio</em>.