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October 25, 2014

Homework Help: Economics

Posted by Dick on Wednesday, December 13, 2006 at 10:45pm.

I have a question about the marginal utility theory

If someone is at consumer equilibrium consuming normal goods, will an increase to income increase total utility

consumption of goods?

An increase in income will increase total utility as well as consumption of normal goods. Consumption of inferior goods would decline.

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