Consuming one more of a good increases its marginal-utility-to-price ratio, and consuming one less of the other good lowers its marginal-utility-to-price ratio.

Question

Quizplus · Accepted Answer

Consuming more of a good typically decreases its marginal utility due to the law of diminishing marginal utility, while consuming less of another good increases its marginal utility.

Consuming One More of a Good Increases Its Marginal-Utility-To-Price Ratio