A consumer is attempting to maximize utility in her consumption of goods A and B.If her income and the price of good A do not change but the marginal utility of good B is constant and the price of good B decreases,this will _____ utility per dollar spent on good B.
A)decrease the marginal
B)not affect the marginal
C)decrease the total
D)increase the marginal

Question

Quizplus · Accepted Answer

If the price of good B decreases while the marginal utility of good B remains constant and the consumer's income and the price of good A do not change, the consumer will be able to purchase more of good B for the same amount of money. This means that the consumer will be able to consume more of good B, which will increase the marginal utility of good B. Therefore, the consumer will be able to achieve a higher level of total utility per dollar spent on good B, which is an increase in the marginal utility of good B.

A Consumer Is Attempting to Maximize Utility in Her Consumption