Over the years, Americans have spent a smaller percentage of income on food and a larger percentage on cars. Why is there no paradox of value? C.. There is no paradox of value because O A. the total utility from food and cars are equal O B. food has a low price and a low total utility whereas cars have a high total utility and a high price Oc. food has a low price and a high marginal utility whereas cars have a low marginal utility and a high price OD. food has a low price and a low marginal utility whereas cars have a high marginal utility and a high price O E. the income elasticity of demand for food is greater than the income elasticity of demand for cars
Over the years, Americans have spent a smaller percentage of income on food and a larger percentage on cars. Why is there no paradox of value? C.. There is no paradox of value because O A. the total utility from food and cars are equal O B. food has a low price and a low total utility whereas cars have a high total utility and a high price Oc. food has a low price and a high marginal utility whereas cars have a low marginal utility and a high price OD. food has a low price and a low marginal utility whereas cars have a high marginal utility and a high price O E. the income elasticity of demand for food is greater than the income elasticity of demand for cars
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Question 3
Transcribed Image Text:Over the years, Americans have spent a smaller percentage of income on food and a larger percentage on cars.
Why is there no paradox of value?
There is no paradox of value because
O A. the total utility from food and cars are equal
OB. food has a low price and a low total utility whereas cars have a high total utility and a high price
C. food has a low price and a high marginal utility whereas cars have a low marginal utility and a high price
OD. food has a low price and a low marginal utility whereas cars have a high marginal utility and a high price
O E. the income elasticity of demand for food is greater than the income elasticity of demand for cars
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education