Asked by
Alisa Maldonado
on Dec 11, 2024
Verified
After downing three glasses of lemonade on a hot summer afternoon, Todd says, "You would have to pay me to drink another glass!" This statement best illustrates
A) the law of demand.
B) the substitutability among goods.
C) the law of diminishing marginal utility.
D) that chocolate candy bars are an inferior good.
Diminishing Marginal Utility
The decrease in satisfaction or usefulness obtained from each additional unit of consumption.
Inferior Good
A type of good for which demand decreases as the income of the consumer increases, due to the availability of more desirable substitutes.
- Perceive how the principle of diminishing marginal utility influences the choices of consumers.
Verified Answer
EP
Learning Objectives
- Perceive how the principle of diminishing marginal utility influences the choices of consumers.