Marginal utility theory predicts that a rise in the price of a banana results in
A)the demand curve for bananas shifting rightward.
B)the demand curve for bananas shifting leftward.
C)a movement upward along the demand curve for bananas.
D)a movement downward along the demand curve for bananas.
E)the demand curve for bananas shifting rightward and the supply curve for bananas shifting rightward.

Question

Quizplus · Accepted Answer

Marginal utility theory suggests that as the price of a product increases, consumers will buy less of it, which is represented by a movement upward along the demand curve, not a shift of the curve itself.

Marginal Utility Theory Predicts That a Rise in the Price