Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 7 - Utility Maximization - Discussion Questions - Page 164: 6

Answer

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Work Step by Step

How people pay for products impact how much of the product they use. After all, consider the case of renters living together. If I know I only pay 1/4 of the electric bill, I will be more willing to use electricity than if I have to pay the whole electric bill.
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