A university cafeteria changes from offering all-you-can-eat meals for one low price to selling each food item separately.After this change,one would expect that the marginal utility of the last food item consumed in the cafeteria by the typical student would:
A) decrease since less food is now likely to be consumed by students who eat a meal in the cafeteria.
B) increase since less food is now likely to be consumed by students who eat a meal in the cafeteria.
C) not change since the same quantity of food is now likely to be consumed at each meal.
D) decrease since more food is now likely to be consumed by students who eat a meal in the cafeteria.

Question

Quizplus · Accepted Answer

When food items are sold separately, students are likely to consume less food, leading to a higher marginal utility for the last item consumed as they choose more carefully based on their preferences and budget.

A University Cafeteria Changes from Offering All-You-Can-Eat Meals for One