When the price of a commodity falls, we can expect

Name: When the price of a commodity falls, we can expect
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Question

Quizplus · Accepted Answer

When the price of a commodity falls, consumers are likely to purchase more of it, which leads to an increase in the quantity demanded. As a result, consumers will continue to purchase more units of the good until the marginal utility of the last unit purchased falls. Therefore, we can expect that the marginal utility of the last unit purchased will fall when the price of a commodity falls.

When the Price of a Commodity Falls, We Can Expect