If the price of a good increases, it will tend to make the MU to P ratio for the good rise and the good becomes more attractive to the buyer.

Name: If the price of a good increases, it will tend to make the MU to P ratio for the good rise and the good becomes more attractive to the buyer.
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Question

Quizplus · Accepted Answer

When the price of a good increases, the marginal utility to price ratio (MU/P) decreases, making the good less attractive to the buyer, as they are getting less utility per unit of currency spent.

If the Price of a Good Increases, It Will Tend