When the price of popcorn falls, before there is any change in consumption, the
A) marginal utility of popcorn definitely increases.
B) marginal utility per dollar from popcorn definitely increases.
C) total expenditure on popcorn definitely rises.
D) entire total utility of popcorn curve definitely shifts rightward.

Question

Quizplus · Accepted Answer

When the price of popcorn falls, the marginal utility per dollar from popcorn increases because consumers are getting the same utility for a lower price, making each dollar spent on popcorn more valuable in terms of utility.

When the Price of Popcorn Falls, Before There Is Any