The MU/P of a good will decrease when there is a(n)
A) fall in the price of the good
B) increase in its marginal utility
C) increase in the price of a good
D) increase in consumer surplus
E) decrease in income

Question

Quizplus · Accepted Answer

The MU/P (Marginal Utility per unit of Price) of a good will decrease when there is an increase in the price of the good, as the denominator of the MU/P ratio increases, assuming marginal utility remains constant.

The MU/P of a Good Will Decrease When There Is