If the price of a good falls, the marginal utility per dollar received from consuming a specific unit of that good
A)also falls
B)stays the same
C)rises
D)will rise or fall, depending on the consumer
E)remains unchanged, provided the consumer buys no more of the good

Question

Quizplus · Accepted Answer

When the price of a good falls, the marginal utility per dollar increases because the consumer is getting the same utility for a lower price, thus increasing the utility received per dollar spent.

If the Price of a Good Falls, the Marginal Utility