A consumer buys only food and clothing. If the quantity of food bought increases while that of clothing remains the same, the marginal utility of food will:
A) fall, but not as fast as the marginal utility of clothing falls.
B) rise, but not as fast as the marginal utility of clothing rises.
C) rise relative to the marginal utility of clothing.
D) fall relative to the marginal utility of clothing.

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, as one consumes more units of a good, the additional satisfaction or utility from each additional unit consumed decreases. Therefore, as the consumer buys more and more food, the marginal utility of each additional unit of food will decrease. However, since the quantity of clothing remains the same, the marginal utility of clothing will not change, making the marginal utility of food fall relative to the marginal utility of clothing.

A Consumer Buys Only Food and Clothing