Question

The law of diminishing marginal utility will not hold good if income of the consumer: * 1 point Increases Decreases Remains constant Either increases or decreases

Answer 1

Answer:

Explanation:

Law of diminishing marginal utility:

According to the law of declining marginal utility, when consumption rises, the marginal utility gained from each extra unit decreases, all other things being equal. The incremental improvement in utility brought on by consuming one more unit is known as marginal utility. An economic term for happiness or contentment is "utility."

Example of Diminishing utility:

A person decides to buy five slices of pizza because they are very hungry and can buy a slice of pizza for $$2$. Once this is done, the person eats the first slice of pizza and benefits in some way from doing so. The first slice of pizza has a high benefit because the person was hungry and this was the first thing eaten.

The law of diminishing marginal utility will not hold good if income of the consumer:

Either increase or decrease because the marginal utility may not always be declining with an increase in income.

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