Suppose a consumer buys only food and clothing.If the quantity of food bought decreases while that of clothing remains the same,their marginal utility from food will:
A) fall relative to the marginal utility of clothing.
B) rise relative to the marginal utility of clothing.
C) rise, but not as fast as their marginal utility of clothing rises.
D) fall, but not as fast as their marginal utility of clothing falls.

Question

Quizplus · Accepted Answer

When the quantity of food bought decreases, the marginal utility of food will rise relative to clothing because of the law of diminishing marginal utility, which states that as you consume less of a good, the additional satisfaction (marginal utility) from consuming an additional unit of that good increases.

Suppose a Consumer Buys Only Food and Clothing