-The above table shows Homer's utility from boxes of doughnuts.If Homer decreases his consumption of doughnuts from 4 boxes to 3 boxes,his
A) total utility and marginal utility will both decrease.
B) total utility will decrease, but his marginal utility will increase.
C) total utility will increase, but his marginal utility will decrease.
D) total utility and marginal utility will both increase.
E) None of the above answers is correct.

Question

-The above table shows Homer's utility from boxes of doughnuts.If Homer decreases his consumption of doughnuts from 4 boxes to 3 boxes,his
A) total utility and marginal utility will both decrease. 
B) total utility will decrease, but his marginal utility will increase. 
C) total utility will increase, but his marginal utility will decrease. 
D) total utility and marginal utility will both increase. 
E) None of the above answers is correct.

Quizplus · Accepted Answer

When Homer decreases his consumption of doughnuts from 4 boxes to 3 boxes, his total utility decreases because he is consuming less. However, his marginal utility increases because the utility he gains from each additional box of doughnuts is higher when he consumes less, reflecting the law of diminishing marginal utility.

-The Above Table Shows Homer's Utility from Boxes of Doughnuts