Answered

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True or False Question

True or false: If successive units of a good yield smaller and smaller amounts of marginal utility, then the consumer will buy additional units of the good only if its price rises.

A. True
B. False

Sagot :

GinnyAnswer

Final answer:

If successive units of a good yield smaller amounts of marginal utility, the consumer will buy additional units of the good only if the price falls, not rises.


Explanation:

False. If successive units of a good yield smaller and smaller amounts of marginal utility, the consumer will buy additional units of the good only if the price falls, not rises. This is because as marginal utility decreases, the consumer is willing to purchase more at a lower price.

Diminishing marginal utility is a key concept in economics, where the additional satisfaction from consuming each extra unit of a good diminishes over time.

Consumer equilibrium is reached when the marginal utility per dollar spent on the last unit of each good is equal.


Learn more about Diminishing marginal utility here:

https://brainly.com/question/30391995


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