If income falls,then in the new consumer equilibrium
A)the marginal utility from normal goods increases.
B)the marginal utility from normal goods decreases.
C)the marginal utility from inferior goods increases.
D)total utility from normal goods increases.
E)total utility from inferior goods decreases.

Question

Quizplus · Accepted Answer

When income falls, consumers buy less of normal goods, leading to an increase in their marginal utility as each unit becomes more valuable.

If Income Falls,then in the New Consumer Equilibrium