Marginal utility is the change in total utility that results from which of the following?
A) an increase in the price of a good
B) a one-unit change in the quantity of a good consumed
C) a decrease in the price of a good
D) a change in the budget line

Question

Quizplus · Accepted Answer

Marginal utility is the concept of measuring the additional satisfaction or utility obtained from consuming one additional unit of a good. Therefore, the change in total utility that results from a one-unit change in the quantity of a good consumed is the measure of marginal utility. A change in price (A and C) and the budget line (D) may affect the consumer's decision-making, but they do not directly influence the calculation of marginal utility.

Marginal Utility Is the Change in Total Utility That Results