The Principle of Diminishing Marginal Utility

question 319

Essay

The principle of diminishing marginal utility:
A.refers to the tendency of total utility to increase until an individual's budget is no longer constrained.
B.refers to the tendency of marginal utility to decline as the amount of consumption of a good or service increases.
C.indicates that if a good is inferior, less of it will be purchased when income falls during a period.
D.assumes all goods are normal.

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Definitions:

Cognitive Factors

Elements that involve the mental processes of perception, memory, judgment, and reasoning.

Health Behavior

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Theoretical Behavior

Actions or conducts predicted or explained by theories that attempt to understand and model how and why individuals act the way they do.

Models

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