When a consumer shifts his purchases from product A to product B, the marginal utility of
A) A falls and the marginal utility of B will increase.
B) both A and B will decrease.
C) A increases and the marginal utility of B will fall.
D) both A and B will increase.

Question

Quizplus · Accepted Answer

When a consumer shifts purchases from product A to product B, the marginal utility of A increases because less of it is consumed, while the marginal utility of B decreases as more of it is consumed.

When a Consumer Shifts His Purchases from Product a to Product