As Goldilocks consumes more gummy bears, her total utility ________ and her marginal utility from gummy bears ________.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases

Question

Quizplus · Accepted Answer

As Goldilocks consumes more gummy bears, her total utility increases because she is gaining satisfaction from each additional gummy bear. However, her marginal utility decreases due to the law of diminishing marginal utility, which states that as a person consumes more of a good, the additional satisfaction from each additional unit decreases.

As Goldilocks Consumes More Gummy Bears, Her Total Utility ________