Asked by
Kavita Guleria
on Nov 30, 2024Verified
As a person buys increasing amounts of a good,their marginal utility ______ and their consumer surplus _____.
A) decreases;increases
B) decreases;decreases
C) increases;increases
D) increases;decreases
Marginal Utility
The additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.
Consumer Surplus
The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.
- Assess the connection between the volume of goods consumed and the consumer's additional advantage.
- Employ the principle of diminishing marginal utility in varied economic settings.
Verified Answer
JW
Learning Objectives
- Assess the connection between the volume of goods consumed and the consumer's additional advantage.
- Employ the principle of diminishing marginal utility in varied economic settings.