Post Utme Ims U 2019 Commerce Question 36

Practice objective / multiple choice question 36 from the 2019 Post Utme Ims U Commerce examination.

Post Utme Ims U 2019 Commerce Objective / Multiple Choice
Question 36 POST_UTME_IMS_U • 2019 • COMMERCE • objective

In a market economy, the law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit decreases. Which of the following is a consequence of this law?

Answer Options

A. The demand for the good increases as its price falls.
B. The supply of the good increases as its price rises.
Correct Answer C. The marginal utility of the good decreases as its quantity consumed increases.
D. The law of supply and demand is irrelevant in a market economy.
Correct Answer
C
Correct Option:
The marginal utility of the good decreases as its quantity consumed increases.

About This Question

This is Post Utme Ims U 2019 Commerce Question 36. It is one of the objective questions from the 2019 Post Utme Ims U Commerce examination.

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