When the slope of the total utility curve is de... - JAMB Economics 2012 Question
When the slope of the total utility curve is declining, the marginal utility of a consumer will be increasing if he
A
stops consuming more of the commodity
B
reduces the quantity consumed
C
increases the quantity consumed
D
consumes more of another commodity
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Correct Option: C
Here's the breakdown:
- Total Utility (TU): The overall satisfaction a consumer gets from consuming a good or service.
- Marginal Utility (MU): The additional satisfaction a consumer gets from consuming one more unit of a good or service.
- Relationship:
- When TU is increasing, MU is positive.
- When TU is at its maximum, MU is zero.
- When TU is declining, MU is negative.
The question states the slope of the total utility curve is declining, meaning total utility is decreasing. This corresponds to a negative marginal utility. Reducing the quantity consumed would lead to an increase in marginal utility (becoming less negative or approaching zero), whereas increasing consumption of the good when TU is declining would only further decrease total
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