As an Individual's Consumption of a Good Increases

question 182

Multiple Choice

As an individual's consumption of a good increases

• A) his or her total utility increases.
• B) his or her marginal utility increases.
• C) the price of the good increases.
• D) All of the above answers are correct.

---

Definitions:

Income

The money received by an individual or business in exchange for labor, services, or investment, often measured on a regular basis like monthly or yearly.

Marginal Utility

Marginal utility refers to the extra satisfaction or benefit a consumer receives by consuming an additional unit of a good or service.

Total Utility

The complete gratification or advantage gained from using a specific quantity of a product or service.

Marginal Utility

The additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.