86.7k views
5 votes
If a consumer is currently maximizing her satisfaction, what will happen to the marginal utility of a good when its price increases? The marginal utility will __________.

User Myra
by
4.3k points

1 Answer

7 votes

Answer:

If a consumer is currently maximizing her satisfaction, what will happen to the marginal utility of a good when its price increases? The marginal utility will decrease.

Step-by-step explanation:

marginal utility occurs when a consumer reaches maximum point of satisfaction from the consumption of a certain product such that the satisfaction falls with additional consumption of same product.

based on this definition, increasing the price of the good will even make the consumer buy less.

A good remedy would be to introduce an alternative product with additional value that will compete for consumers attention if price increment must be considered.

User Lilly
by
4.1k points