A consumer will buy a new product rather than an existing product
A)when the MU/ P of the new product is less than the MU/ P of the existing product.
B)when the substitution of the new product for the old product increases the consumer's total utility.
C)only if the new product has a lower price than the existing product.
D)only if the MU of the new product exceeds the MU of the existing product.

Question

Quizplus · Accepted Answer

The consumer will opt for the new product over the existing one if substituting the new product for the old one increases the consumer's total utility, indicating a preference based on overall satisfaction rather than just marginal utility or price comparisons alone.

A Consumer Will Buy a New Product Rather Than an Existing