A useful rule of thumb is that the lower the marginal benefit a consumer gains from a product, the
A)lower the consumer's reservation price will be.
B)less price-sensitive the consumer will be.
C)higher the consumer's demand for the product will be.
D)higher the price that the seller can charge.

Question

Quizplus · Accepted Answer

If the marginal benefit a consumer gains from a product is low, then the consumer will not be willing to pay a high price for it. This means that the consumer's reservation price will be lower, so they will only purchase the product if it is offered at a lower price.

A Useful Rule of Thumb Is That the Lower the Marginal