In general, as the price of a good falls, the consumer buys
A) more of the good and the marginal utility falls.
B) less of the good and the marginal utility falls.
C) more of the good and the total utility falls.
D) less of the good and the total utility rises.

Question

Quizplus · Accepted Answer

As the price of a good falls, consumers are likely to buy more of it because it becomes more affordable, and as they consume more, the additional satisfaction (marginal utility) from each additional unit consumed tends to decrease according to the law of diminishing marginal utility.

In General, as the Price of a Good Falls, the Consumer