📚 Learning Guide
Marginal Utility and Consumer Choice
hard

If a consumer increases their consumption of apples and experiences a decrease in their marginal utility from apples, what is the most likely underlying cause of this effect?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

The consumer is reaching a point of diminishing marginal utility for apples.

B

The consumer is now spending more on oranges than apples.

C

The consumer has increased their budget for purchasing apples.

D

The price of apples has decreased significantly.

Understanding the Answer

Let's break down why this is correct

Answer

When a consumer eats more apples, each additional apple they consume gives them less satisfaction, which is known as diminishing marginal utility. This happens because, after eating a few apples, they start to feel full or lose interest in the taste of apples. For example, if someone eats one apple and enjoys it a lot, the second apple may still be good, but it won't be as exciting as the first. As they continue to eat more, the pleasure they get from each new apple decreases. This pattern shows how our enjoyment can change based on how much of something we have already consumed.

Detailed Explanation

When a person eats more apples, each additional apple gives them less satisfaction. Other options are incorrect because This answer suggests that spending more on oranges affects how much you enjoy apples; Increasing your budget for apples means you can buy more, but it doesn't change how much you enjoy each apple.

Key Concepts

Marginal Utility
Consumer Choice
Budget Constraint
Topic

Marginal Utility and Consumer Choice

Difficulty

hard level question

Cognitive Level

understand

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.