For most people, as their income increases, their utility from that income ________ at a(n) ________ rate.
A) increases; increasing
B) decreases; decreasing
C) increases; decreasing
D) decreases; increasing

Question

Quizplus · Accepted Answer

This is because of the principle of diminishing marginal utility, which states that as a person receives more of a good, the additional satisfaction (utility) from each additional unit of the good decreases.

For Most People, as Their Income Increases, Their Utility from That