When the price of a commodity rises, we can expect
A)marginal utility of the last unit purchased will rise.
B)marginal utility of the last unit purchased will fall.
C)marginal utility of the last unit purchased will be unaffected.
D)purchases to rise because of the increased marginal utility.

Question

Quizplus · Accepted Answer

When the price of a commodity rises, consumers tend to buy less of it, which means the marginal utility of the last unit purchased increases because each unit is now more valuable to the consumer.

When the Price of a Commodity Rises, We Can Expect