According to marginal utility theory, a rise in income will
A) increase a consumer's total utility.
B) increase consumption of all goods.
C) increase the marginal utility of all goods.
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

According to marginal utility theory, a rise in income will increase a consumer's total utility because the consumer can now afford to buy more goods and services, which will increase their overall satisfaction.

According to Marginal Utility Theory, a Rise in Income Will