According to the Principle of Diminishing Marginal Utility,as Consumption of a Good

question 77

Multiple Choice

According to the principle of diminishing marginal utility,as consumption of a good increases,total utility

• A)decreases and then eventually increases.
• B)decreases at an increasing rate.
• C)decreases at a decreasing rate.
• D)increases at an increasing rate.
• E)increases at a decreasing rate.

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Definitions:

Physiological Desire

A fundamental need stemming from the body's biological functions, such as hunger, thirst, or the need for sleep.

Psychological Desire

An emotional state that compels individuals towards a specific need or want, influencing behavior.

Unfulfilled

A state or condition where expectations, needs, or goals have not been met or achieved.

Lower-order Needs

Basic human necessities such as physiological and safety needs, according to Maslow’s hierarchy.