Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
True
B
False
Understanding the Answer
Let's break down why this is correct
Answer
Marginal benefit is the extra satisfaction or value that a consumer gets from using one more unit of a good. When the marginal benefit of a good increases but its price stays the same, it means that the good is providing more value than before for the same cost. For example, if you usually enjoy a slice of pizza enough to pay $2 for it, but then you realize that the extra satisfaction you get from one more slice is worth $3, you are likely to buy that extra slice since it gives you more benefit than what you pay for it. This situation shows that consumers will often choose to buy more of a good when its perceived value rises, even if their budget does not change. Thus, marginal benefit plays a key role in influencing consumer decisions and can lead to increased purchases.
Detailed Explanation
This statement is true. Other options are incorrect because This option suggests that people will always buy more if the benefit increases.
Key Concepts
Marginal Benefit Calculation
Consumer Choice Theory
Budget Constraints
Topic
Marginal Benefit Calculation
Difficulty
hard level question
Cognitive Level
understand
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