Marginal utility theory predicts that as the price of coffee rises, the ________ a substitute for coffee ________ and the ________ coffee ________.
A) supply of; increases; demand for; decreases
B) supply of; decreases; supply of; increases
C) demand for; increases; quantity demanded of; decreases
D) demand for; decreases; demand for; increases

Question

Quizplus · Accepted Answer

Marginal utility theory suggests that as the price of coffee rises, consumers will seek substitutes, increasing the demand for substitutes, while the quantity demanded of coffee itself decreases due to its higher price.

Marginal Utility Theory Predicts That as the Price of Coffee