As more of a good is consumed, the marginal utility of an additional unit ________, so consumers are willing to pay ________ for an additional unit.
A) decreases; less
B) increases; more
C) decreases; more
D) does not change; less
E) increases; less

Question

Quizplus · Accepted Answer

This is the law of diminishing marginal utility, which states that as one consumes more of a good, the marginal utility of each additional unit decreases. Therefore, consumers are willing to pay less for each additional unit.

As More of a Good Is Consumed, the Marginal Utility