Marginal utility theory predicts that a rise in the price of a banana results in
A) the demand curve for bananas shifting rightward.
B) the demand curve for bananas shifting leftward.
C) a movement upward along the demand curve for bananas.
D) a movement downward along the demand curve for bananas.

Question

Quizplus · Accepted Answer

Marginal utility theory suggests that as the price of a banana rises, consumers will purchase fewer bananas, resulting in a movement upward along the demand curve, not a shift of the curve itself.

Marginal Utility Theory Predicts That a Rise in the Price