Consumers are always willing to pay the most for the very first unit, and pay less for each additional unit. This idea is called:
O the income effect
O the substitution effect
O diminishing marginal utility
O desire

Economists have identified a concept known as the law of diminishing marginal utility. It describes how the first unit of consumption of a good or service carries more utility than later units. ... Marginal utility is useful in explaining how consumers make choices to get the most benefit from their limited budgets

Answer Link

Consumers are always willing to pay the most for the very first unit, and pay less for each additional unit. This idea is called: O the income effect O the substitution effect O diminishing marginal utility O desire

Respuesta :

Otras preguntas

Consumers are always willing to pay the most for the very first unit, and pay less for each additional unit. This idea is called:
O the income effect
O the substitution effect
O diminishing marginal utility
O desire