Question

A prediction of marginal utility theory is that a rise in the price of a good will lead to​ ______. A. an increase in the marginal utility from consumption of the good B. a decrease in the demand for the good C. an increase in the quantity demanded of the good D. an increase in the total utility from the consumption of the good

Answer 1

Answer:

Correct answer: "Option: A".

Explanation:

A prediction of the marginal utility theory states that the rise in the price of the goods may lead to an increase in the marginal utility from the consumption of goods.

It is because, with the rise in the price of the goods, the movement is upward along the demand curve, which means that a decrease in the quantity demanded related to the goods, will lead to an increase in the marginal utility.