QuestionJune 15, 2025

Question 4(Multiple Choice Worth 4 points) (01.03 MC) Which statement describes the Law of Diminishing Marginal Utility? Making choices requires trade-offs and opportunity cost because of limited resources. A maximum amount exists for a good or service that will be purchased at a given price. The total amount of a good or service that people consume decreases as price decreases. ) There is a decrease in satisfaction from each additional unit of a good or service consumed.

Question 4(Multiple Choice Worth 4 points) (01.03 MC) Which statement describes the Law of Diminishing Marginal Utility? Making choices requires trade-offs and opportunity cost because of limited resources. A maximum amount exists for a good or service that will be purchased at a given price. The total amount of a good or service that people consume decreases as price decreases. ) There is a decrease in satisfaction from each additional unit of a good or service consumed.
Question 4(Multiple Choice Worth 4 points)
(01.03 MC)
Which statement describes the Law of Diminishing Marginal Utility?
Making choices requires trade-offs and opportunity cost because of limited resources.
A maximum amount exists for a good or service that will be purchased at a given price.
The total amount of a good or service that people consume decreases as price decreases.
) There is a decrease in satisfaction from each additional unit of a good or service consumed.

Solution
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Answer

There is a decrease in satisfaction from each additional unit of a good or service consumed. Explanation 1. Identify the Law of Diminishing Marginal Utility The Law of Diminishing Marginal Utility states that as a person consumes more units of a good or service, the additional satisfaction (utility) gained from consuming each additional unit decreases.

Explanation

1. Identify the Law of Diminishing Marginal Utility<br /> The Law of Diminishing Marginal Utility states that as a person consumes more units of a good or service, the additional satisfaction (utility) gained from consuming each additional unit decreases.
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