Asked by
Narmada Ingle
on Oct 08, 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 utility that a consumer derives from consuming an additional unit of a good or service.
Purchases
The act of buying goods or services.
Product X
A placeholder name used to refer to a generic or unspecified product in economic and marketing contexts.
- Clarify the concept of diminishing marginal utility.
- Utilize the principle of marginal utility in the process of consumer decision-making and optimizing utility.
Verified Answer
FO
Learning Objectives
- Clarify the concept of diminishing marginal utility.
- Utilize the principle of marginal utility in the process of consumer decision-making and optimizing utility.