When the price of a good rises,the ratio of the marginal utility of that good divided by its price _______ and,as a result,consumers purchase _______of that good.

Question

Quizplus · Accepted Answer

When the price of a good rises, the ratio of the marginal utility of that good to its price falls. This means that consumers will purchase less of that good, as the marginal benefit they receive per unit of money spent decreases. Therefore, the correct answer is D) falls;less.

When the Price of a Good Rises,the Ratio of the Marginal