If a product has a high marginal utility,then
A)Consumers will not purchase any more of the good.
B)The demand curve will be downward-sloping.
C)A consumer is willing to pay a high price for it.
D)Consumers will also have a low total utility.

Question

Quizplus · Accepted Answer

A high marginal utility means that the consumer values each additional unit of the good highly. Therefore, they are willing to pay a high price for it. Option A is incorrect as a high marginal utility means that the consumer will want to purchase more of the good. Option B is incorrect as the demand curve's slope is not determined only by marginal utility. Option D is incorrect as a high marginal utility means that the consumer's total utility is also high.

If a Product Has a High Marginal Utility,then