Economists state that the __________ utility a person receives from a unit of a good, the __________.
A)more; lower the price he or she is willing to pay for it.
B)more; higher the price he or she is willing to pay for it.
C)less; higher the price he or she is willing to pay for it.
D)less; price will not be impacted.

Question

Economists state that the __________ utility a person receives from a unit of a good, the __________.
A)more; lower the price he or she is willing to pay for it.
B)more; higher the price he or she is willing to pay for it.
C)less; higher the price he or she is willing to pay for it.
D)less; price will not be impacted.

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, as a person consumes more units of a good, the additional utility he or she derives from each additional unit decreases. Therefore, the more utility a person receives from a unit of a good, the more valuable that unit becomes to the person and the higher the price he or she will be willing to pay for it.

Economists State That the __________ Utility a Person Receives from a Unit