49-Given that price is constant, the lower the marginal utility of a good as more of...
49-Given that price is constant, the lower the marginal utility of a good as more of the good is consumed:
the less you are willing to buy of it.
the more you are willing to buy of it.
the fewer substitutes there are.
the more substitutes there are.
Homework Answers
Answer - the less you are willing to buy of it.
Reason - marginal utility is the measure of satisfaction derived from the consumption of a unit of good. The first unit consumed gives the maximum utility and as more and more units are consumed the utility or the willingness to consume it decreases.
So the lower the marginal utility of a good as more of the good is consumed, the less you are willing to buy it.
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49-Given that price is constant, the lower the marginal utility
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