If price and marginal benefit are equal for an individual, and preferences and income do not change, the individual can be induced to buy more of a good only by
A)decreasing marginal benefit.
B)decreasing price.
C)increasing marginal utility.
D)decreasing marginal utility.
E)increasing price.

Question

Quizplus · Accepted Answer

If price and marginal benefit are equal and preferences and income do not change, the individual is already at their optimal level of consumption. The only way to induce them to buy more of a good is by decreasing the price, as this would increase the individual's marginal benefit, and purchasing more would then result in a higher total benefit. Thus, the best choice is B, decreasing price.

If Price and Marginal Benefit Are Equal for an Individual