Which income change would cause Martin's utility level to change by the largest absolute amount?

Question

Quizplus · Accepted Answer

According to the principle of diminishing marginal utility, as income increases, the additional utility gained from each additional dollar decreases. Therefore, a larger income change (such as a $2,000 loss) will have a larger impact on Martin's overall utility than a smaller income change (such as a $1,000 gain). Hence, option D is the best choice.

Which Income Change Would Cause Martin's Utility Level to Change