If a product has a high marginal utility,then
A)Consumers will not purchase any more of the good.
B)The demand curve will be downward-sloping.
C)A consumer is willing to pay a high price for it.

Question

Quizplus · Accepted Answer

If a product has a high marginal utility, it means that each additional unit of the good provides a significant amount of satisfaction to the consumer. This, in turn, would make the consumer willing to pay a high price for it as the additional satisfaction they receive from each unit is worth more to them. Therefore, Option C is the correct choice. Option A is incorrect as consumers will continue to purchase the good as long as the marginal utility is positive. Option B is also incorrect as the demand curve does not necessarily depend on the marginal utility, but rather on the overall price and consumer preferences.

If a Product Has a High Marginal Utility,then