Using the utility-optimizing model, which of the following would induce a consumer to increase consumption of good A, a normal good?
A) an increase in the marginal utility of A
B) a decrease in the total utility of B
C) an increase in the marginal utility of good B
D) a decrease in income

Question

Quizplus · Accepted Answer

According to the utility-optimizing model, a consumer will increase consumption of a normal good if the marginal utility of the good increases. Therefore, an increase in the marginal utility of good A would induce the consumer to increase consumption of good A. The other options (B, C, and D) either have no effect on the consumption of good A or would decrease it.

Using the Utility-Optimizing Model, Which of the Following Would Induce