Marginal utility theory predicts that if a consumer's income decreases, the consumer
A) buys fewer normal goods.
B) buys fewer inferior goods.
C) buys more of all goods.
D) might either increase or decrease purchases of normal goods.

Question

Quizplus · Accepted Answer

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

Marginal Utility Theory Predicts That If a Consumer's Income Decreases