Asked by Tesha Cherry on Jun 10, 2024
Verified
When a consumer shifts purchases from product X to product Y, the marginal utility of
A) X falls and the marginal utility of Y rises.
B) X rises and the marginal utility of Y falls.
C) both X and Y rises.
D) both X and Y falls.
Marginal Utility
The additional satisfaction or benefit a consumer gains from consuming one more unit of a good or service.
Purchases Shift
A change in the buying behavior of consumers, often referring to a movement in demand for goods or services in the market.
Utility Change
refers to changes in the level of satisfaction or happiness that a consumer derives from consuming goods or services, indicating shifts in preferences or economic circumstances.
- Identify the significance of diminishing marginal utility in the decisions of consumers.
Verified Answer
Learning Objectives
- Identify the significance of diminishing marginal utility in the decisions of consumers.
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