For a person in a desert community, as compared to being in a non-desert community,water would have
A) lower marginal utility and lower total utility
B) lower marginal utility and higher total utility
C) higher marginal utility and lower total utility
D) higher marginal utility and higher total utility
E) zero marginal utility, but higher total utility

Question

Quizplus · Accepted Answer

In a desert community, water is scarce and essential, so each additional unit of water provides significant additional satisfaction (higher marginal utility), and the overall satisfaction from having water is also high (higher total utility).

For a Person in a Desert Community, as Compared to Being