Assertion (A): If MU in rupees is less than the price, the consumer should buy less of the good.
Reason (R): Buying less raises the marginal utility of the last unit bought.

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 true: the last unit is worth less than it costs.
R is true and explains how cutting back restores MU = price: with fewer units, the last one has a higher MU.

Concept: Moving back to equilibrium
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsEquilibrium with one good

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

Assertion (A): If MU in rupees is less than the price, the consumer should buy less of the good.Reason (R): Buying less raises the marginal utility of the last unit bought.

Explanation

Assertion (A): If MU in rupees is less than the price, the consumer should buy less of the good.
Reason (R): Buying less raises the marginal utility of the last unit bought.