If the price of good A falls,it will:
A) increase a consumer's total utility from the consumption of that good.
B) increase a consumer's marginal utility from consuming the last unit of that good.
C) decrease a consumer's marginal utility from consuming the last unit of that good.
D) do both (a) and (c).

Question

Quizplus · Accepted Answer

When the price of good A falls, a consumer can purchase more of it, increasing total utility. However, as more units are consumed, the marginal utility of the last unit typically decreases due to the law of diminishing marginal utility.

If the Price of Good a Falls,it Will