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The law of diminishing marginal utility suggests that:
A. People are willing to pay more for a good the less of it they have.
B. People will substitute lower-priced goods for more expensive goods, ceteris paribus.
C. Price and quantity demanded are directly related.
D. As marginal utility decreases, the willingness to pay increases.
The law of diminishing marginal utility suggests that:
A. People are willing to pay more for a good the less of it they have.
B. People will substitute lower-priced goods for more expensive goods, ceteris paribus.
C. Price and quantity demanded are directly related.
D. As marginal utility decreases, the willingness to pay increases.
Nusrat FatimaLv10
15 Jan 2021
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Related questions
The law of diminishing marginal utility (LODMU) states that:
| as more and more of a good is consumed, beyond a point marginal utility will increase at a decreasing rate |
| the quantity of a good demanded will rise as the price is lowered, holding all other factors constant |
| the demand for goodwill rise as the price is lowered, holding all other factors constant |
| if an individual increases consumption of one good, then consumption of other goods must decrease because the individual has a finite income and goods have positive prices |
| none of the above options are correct |
