The marginal utility of two goods changes ______________.
A) with the quantities consumed
B) for the better, if taxes are imposed
C) if they are intertemporal choices
D) if the mother controls the household budget

Question

Quizplus · Accepted Answer

The marginal utility of goods changes with the quantities consumed due to the law of diminishing marginal utility, which states that as a person consumes more of a good, the additional satisfaction (utility) gained from consuming an additional unit of that good tends to decrease.

The Marginal Utility of Two Goods Changes ______________