Which of the following statements regarding the consumption of more than one good is true?
A)Utility initially increases when consumption of one or more goods increases.
B)Utility increases when less of only one good is consumed.
C)Utility decreases when more of only one good is consumed.
D)Utility does not necessarily increase if more of all goods are consumed.
E)If less of all goods is consumed, utility might increase, decrease, or stay the same.

Question

Quizplus · Accepted Answer

Utility initially increases when consumption of one or more goods increases due to the principle of diminishing marginal utility, which states that additional consumption generally increases utility, though at a decreasing rate.

Which of the Following Statements Regarding the Consumption of More