Economy, asked by yashitagupta10101, 1 month ago

why is the utility of essential goods like bread with has high utility low whereas price of non essential goods like gold which has low utility more​

Answers

Answered by nstarbhardwaj
0

Answer:

The price a consumer is willing to pay for a good depends on his marginal utility, which declines with each additional unit of consumption, according to the law of diminishing marginal utility. Therefore, the price decreases for a normal good when consumption increases.

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