We would expect the total utility of water to be high but its marginal utility to be low. Why?
A)Because water is a fluid and we don't need fluids to live as much as we need food.
B)Because we need water to live and there is so much of it.
C)Because we need water to live and there is very little of it.
D)Because water's price is low.

Question

Quizplus · Accepted Answer

Water is essential for life, which gives it a high total utility. However, because it is abundant in many places, the utility gained from consuming an additional unit (marginal utility) is low.

We Would Expect the Total Utility of Water to Be