Which of the following statements are true in relation to the law of diminishing marginal utility? a)…
Statements a and d are true. Diminishing marginal utility describes how successive units of one commodity add progressively less to total utility. Substitution between…
Choose your answer
Which of the following statements are true in relation to the law of diminishing marginal utility?
a) It indicates the pattern of change in total utility from a commodity consumed
b) It indicates the equilibrium of a consumer
c) It indicates the substitution possibilities of two commodities in consumption
d) It is a single commodity model of consumer behavior
Answer and explanation
Correct answer B
Statements a and d are true. Diminishing marginal utility describes how successive units of one commodity add progressively less to total utility. Substitution between commodities and the allocation of expenditure require a broader consumer-choice framework.
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Telangana SET (TG SET)