-________ leads to a decrease in marginal utility per dollar for soda.
A) Increasing marginal utility
B) The diminishing marginal rate of substitution as fewer sodas are consumed
C) An outward shift in the indifference curves for soda
D) An increase in the price of soda
E) A fall in the price of soda

Question

-________ leads to a decrease in marginal utility per dollar for soda.
A) Increasing marginal utility 
B) The diminishing marginal rate of substitution as fewer sodas are consumed 
C) An outward shift in the indifference curves for soda 
D) An increase in the price of soda 
E) A fall in the price of soda

Quizplus · Accepted Answer

An increase in the price of soda leads to a decrease in marginal utility per dollar for soda because it costs more to obtain the same amount of utility from consuming soda, making each dollar spent on soda yield less utility.

-________ Leads to a Decrease in Marginal Utility Per Dollar