Post Utme Afe Babalola University 2020 Economics Question 11

Practice objective / multiple choice question 11 from the 2020 Post Utme Afe Babalola University Economics examination.

Post Utme Afe Babalola University 2020 Economics Objective / Multiple Choice
Question 11 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2020 • ECONOMICS • objective

The concept of diminishing marginal utility is a fundamental principle in consumer theory. Explain how it influences a consumer's decision-making process when purcha\sing a bundle of goods.

Answer Options

Correct Answer A. The consumer becomes indifferent to the additional units of the good as the marginal utility decreases.
B. The consumer's willingness to pay for the good increases as the marginal utility decreases.
C. The consumer's demand for the good decreases as the marginal utility decreases.
D. The consumer's income effect increases as the marginal utility decreases.
Correct Answer
A
Correct Option:
The consumer becomes indifferent to the additional units of the good as the marginal utility decreases.

About This Question

This is Post Utme Afe Babalola University 2020 Economics Question 11. It is one of the objective questions from the 2020 Post Utme Afe Babalola University Economics examination.

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