Marginal utility theory predicts that when a consumer's income decreases,the consumer
A)buys fewer normal goods.
B)buys more normal goods.
C)buys fewer inferior goods.
D)buys less of all goods.
E)buys more of all goods.

Question

Quizplus · Accepted Answer

When a consumer's income decreases, they tend to buy fewer normal goods because normal goods are those whose demand decreases as income decreases.

Marginal Utility Theory Predicts That When a Consumer's Income Decreases,the