The law of diminishing marginal utility says that... A. as a person consumes more and more of a certain good, the addition to total satisfaction decreases. B. as a person's income increases, the satisfaction associated with each additional dollar earned increases. C. as a person consumes more and more of a certain good, the additional satisfaction increases. D. as a person's income increases, the satisfaction associated with each dollar spent decreases. Assume that this law holds for Quincy with ice cream and pretzels.... Quincy decides to eat less ice cream and more pretzels. As a result, A. Quincy's marginal utility of both ice cream and pretzels increases. B. Quincy's marginal utility of ice cream decreases, and his marginal utility of pretzels increases. C. Quincy's marginal utility of ice cream increases, and his marginal utility of pretzels decreases. D. Quincy's marginal utility of both ice cream and pretzels decreases
The law of diminishing marginal utility says that... A. as a person consumes more and more of a certain good, the addition to total satisfaction decreases. B. as a person's income increases, the satisfaction associated with each additional dollar earned increases. C. as a person consumes more and more of a certain good, the additional satisfaction increases. D. as a person's income increases, the satisfaction associated with each dollar spent decreases. Assume that this law holds for Quincy with ice cream and pretzels.... Quincy decides to eat less ice cream and more pretzels. As a result, A. Quincy's marginal utility of both ice cream and pretzels increases. B. Quincy's marginal utility of ice cream decreases, and his marginal utility of pretzels increases. C. Quincy's marginal utility of ice cream increases, and his marginal utility of pretzels decreases. D. Quincy's marginal utility of both ice cream and pretzels decreases
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The law of diminishing marginal utility says that...
A. as a person consumes more and more of a certain good, the addition to total satisfaction decreases.
B. as a person's income increases, the satisfaction associated with each additional dollar earned increases.
C. as a person consumes more and more of a certain good, the additional satisfaction increases.
D. as a person's income increases, the satisfaction associated with each dollar spent decreases.
Assume that this law holds for Quincy with ice cream and pretzels....
Quincy decides to eat less ice cream and more pretzels. As a result,
A. Quincy's marginal utility of both ice cream and pretzels increases.
B. Quincy's marginal utility of ice cream decreases, and his marginal utility of pretzels increases.
C. Quincy's marginal utility of ice cream increases, and his marginal utility of pretzels decreases.
D. Quincy's marginal utility of both ice cream and pretzels decreases.
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