Which of the following statements is true?
A)The less you have of any one good, the less you would be willing to pay for one more unit of it.
B)The less you have of any one good, the more you would be willing to pay for one more unit of it.
C)The amount you have of any one good does not influence the price you would be willing to pay for it, but it does affect the marginal utility received from consuming a particular unit.
D)none of the above

Question

Quizplus · Accepted Answer

The statement B is true because it reflects the economic principle of diminishing marginal utility. This principle states that as a person consumes more of a good, the additional satisfaction (marginal utility) they get from consuming an additional unit of the good decreases. Therefore, when you have less of a good, the marginal utility of acquiring one more unit is higher, and you would be willing to pay more for that additional unit.

Which of the Following Statements Is True