As more of a good is consumed,the marginal utility of an additional unit ________,so consumers are willing to pay ________ for an additional unit.
A) decreases; less
B) increases; less
C) decreases; more
D) increases; more
E) does not change; less

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, as more of a good is consumed, the marginal utility of an additional unit decreases. This means that the satisfaction or usefulness gained from consuming each additional unit decreases. As a result, consumers are willing to pay less for an additional unit because they derive less satisfaction from it.

As More of a Good Is Consumed,the Marginal Utility of an Additional