If marginal utility is declining over a period of time

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Reference no: EM13740638

1. If marginal utility is declining over a period of time during which the consumption of a good is occurring,

a. total utility must also be declining.

b. total utility could be either increasing or declining, depending on whether marginal utility is positive or negative.

c. by definition, total utility must also be increasing.

d. the rate of change in marginal utility will not have any effect on total utility.

e. total utility will be negative.

2. If two goods have the same price, then

a. the consumer will purchase the same amount of the two in order to maximize utility.

b. the consumer will spend the same amount on each good or service.

c. the consumer will buy enough of these goods or services so that the marginal utilities are the same.

d. the consumer will buy enough of these goods or services so the total utilities are the same.

e. the consumer will maximize quality.

Reference no: EM13740638

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