Total utility always increases when a person increases the consumption of one good while reducing the consumption of another.

Name: Total utility always increases when a person increases the consumption of one good while reducing the consumption of another.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Total utility may decrease if the consumption of the less preferred good is reduced, even if the consumption of the more preferred good is increased. Therefore, the statement is false.

Total Utility Always Increases When a Person Increases the Consumption