The price that a consumer is willing to pay for each unit of a good is based on the:
A) value of marginal utility for that quantity.
B) utility of that quantity.
C) average utility of that quantity.
D) total satisfaction that a person feels from consuming that quantity.

Question

Quizplus · Accepted Answer

The price that a consumer is willing to pay for each unit of a good is based on the value of marginal utility for that quantity, as it reflects the additional satisfaction gained from consuming one more unit of the good.

The Price That a Consumer Is Willing to Pay for Each