If the price of a good increases,the marginal utility per dollar spent ________ and consumers buy ________ of the good.
A) remains the same; more
B) remains the same; less
C) decreases; more
D) decreases; less
E) increases; more

Question

Quizplus · Accepted Answer

When the price of a good increases, the marginal utility per dollar spent decreases because consumers are now getting less value for each dollar spent. As a result, consumers tend to buy less of the good to maximize the utility they get from their limited income. Therefore, the correct answer is D.

If the Price of a Good Increases,the Marginal Utility Per