Using marginal utility theory, when the price of a gallon of milk falls, a consumer will buy
A) the same amount of milk as before and buy more of all other goods.
B) more milk.
C) more milk only if its marginal utility is increasing.
D) more milk only if its marginal utility is constant.

Question

Quizplus · Accepted Answer

According to marginal utility theory, when the price of a good falls, the consumer will buy more of that good because the marginal utility per dollar spent on that good increases, making it more attractive relative to other goods.

Using Marginal Utility Theory, When the Price of a Gallon