Marginal utility theory assumes that when Sally consume less of a good that she was previously consuming more than one unit of, her
A) total utility increases.
B) marginal utility increases.
C) income increases.
D) total utility is maximized.

Question

Quizplus · Accepted Answer

Marginal utility theory suggests that as a person consumes less of a good, the additional satisfaction (marginal utility) gained from consuming an additional unit of that good increases.

Marginal Utility Theory Assumes That When Sally Consume Less of a Good