If total utility declines as an additional unit of a commodity is purchased,
A)marginal utility must be rising.
B)marginal utility is negative.
C)marginal utility is positive but falling.
D)its price must have risen.
E)marginal utility is zero.

Question

Quizplus · Accepted Answer

When total utility declines as an additional unit of a commodity is purchased, it means the satisfaction gained from consuming that additional unit is negative, indicating that the consumer is less satisfied than before. This is captured by the concept of marginal utility being negative.

If Total Utility Declines as an Additional Unit of a Commodity