John likes to eat apples, oranges, and pears. If John increases his consumption of oranges, ceteris paribus, marginal utility theory tell us that John's marginal utility of
A)oranges decreases.
B)apples decreases.
C)pears decreases.
D)oranges remains constant.
E)oranges, apples, and pears all decrease.

Question

Quizplus · Accepted Answer

Marginal utility theory tells us that as consumption of a particular good increases, its marginal utility decreases. Therefore, if John increases his consumption of oranges, his marginal utility of oranges will decrease. This is because the additional units of oranges that he consumes will provide him with less and less additional satisfaction or utility. The marginal utility of apples and pears may or may not be affected, depending on how much John consumes of these fruits and how they relate to his overall consumption pattern.

John Likes to Eat Apples, Oranges, and Pears