Your second glass of water on a hot summer day will
A)increase total utility and decrease marginal utility
B)decrease total utility and decrease marginal utility
C)increase total utility and increase marginal utility
D)decrease total utility and increase marginal utility

Question

Quizplus · Accepted Answer

The second glass of water on a hot summer day will increase the total utility because it adds to the satisfaction received from consuming water. However, it will decrease the marginal utility because the additional satisfaction gained from consuming the second glass is less than the satisfaction gained from the first glass, reflecting the law of diminishing marginal utility.

Your Second Glass of Water on a Hot Summer Day