that purchase?

14. The rules of politics are not always the same as the rules of economics. In discussions of setting budgets

for government agencies, there is a strategy called “closing the Washington Monument.” When an agency

faces the unwelcome prospect of a budget cut, it may decide to close a high-visibility attraction enjoyed by

many people (like the Washington Monument). Explain in terms of diminishing marginal utility why the

Washington Monument strategy is so misleading. Hint: If you are really trying to make the best of a budget

cut, should you cut the items in your budget with the highest marginal utility or the lowest marginal

utility? Does the Washington Monument strategy cut the items with the highest marginal utility or the

lowest marginal utility?

15. Income effects depend on the income elasticity of demand for each good that you buy. If one of the goods
{"title": "Principles of Microeconomics 3e", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "batch_upload": true, "moddate": "2022-12-07T14:23:05-06:00", "file_type": ".pdf", "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "file_name": "Microeconomics3e.pdf", "file_size_mb": 26.99, "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "producer": "Prince 14.2 (www.princexml.com)", "total_pages": 597, "creator": "PDFMiner", "creationdate": "2022-12-07T14:15:44-06:00", "uploaded_via": "batch_uploader", "upload_timestamp": "2026-02-07T15:24:38.309401"}