Under the Law of Diminishing Marginal Utility,what factor limits our ability to rise from Utility line 1 to Utility line 2?
A) the economy
B) our credit
C) our income
D) our conscience
E) our access to information

Question

Quizplus · Accepted Answer

The Law of Diminishing Marginal Utility states that as we consume more of a good or service, the additional satisfaction or utility we derive from each additional unit consumed decreases. Therefore, to move from Utility line 1 to Utility line 2, we would need to consume more of the good or service, which would require an increase in our income to be able to afford it. Therefore, our ability to rise from Utility line 1 to Utility line 2 is limited by our income.

Under the Law of Diminishing Marginal Utility,what Factor Limits Our