Assertion (A): The marginal utility of a good falls as more of it is consumed.
Reason (R): A particular want can be fully satisfied.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

A is the law of diminishing marginal utility, which holds under its assumptions.
R is the basis of the law: as a want gets more and more satisfied, extra units matter less, so R explains A.

Concept: Basis of diminishing MU
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsDiminishing marginal utility

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Ten questions from Utility & Consumer's Equilibrium, at your own pace.

Assertion (A): The marginal utility of a good falls as more of it is consumed.Reason (R): A particular want can be fully satisfied.

Explanation

Assertion (A): The marginal utility of a good falls as more of it is consumed.
Reason (R): A particular want can be fully satisfied.