Asked by
Morgan Brown
on Dec 11, 2024Verified
After eating six chocolate candy bars in ten minutes, Mia says, "You would have to pay me to eat another chocolate candy bar!" 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 principle that as a consumer consumes more of a good or service, the additional satisfaction gained from consuming an additional unit decreases.
Inferior Good
A type of good for which demand decreases as the income of consumers increases, opposite to what is observed with normal goods.
- Comprehend the effect of diminishing marginal utility on the selections made by consumers.
Verified Answer
SH
Learning Objectives
- Comprehend the effect of diminishing marginal utility on the selections made by consumers.