Marginal willingness to pay
A)rises as greater quantities are consumed.
B)falls as greater quantities are consumed.
C)stays the same as greater quantities are consumed.
D)none of the above

Question

Marginal willingness to pay
A)​rises as greater quantities are consumed.
B)​falls as greater quantities are consumed.
C)​stays the same as greater quantities are consumed.
D)​none of the above

Quizplus · Accepted Answer

Marginal willingness to pay refers to the maximum amount a consumer is willing to pay for an additional unit of a good or service. As more of the good or service is consumed, the marginal benefit decreases, meaning that the willingness to pay for an additional unit decreases. Therefore, the marginal willingness to pay falls as greater quantities are consumed.

Marginal Willingness to Pay