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JAMB Economics 1978 Question 28

Question 28

Theory of Consumer Behaviour

As consumption of beer increases, its marginal utility to a drinker will

  1. A.increase
  2. B.remain constant
  3. C.fluctuate
  4. D.decrease
  5. E.change proportionately.
Show the answer and explanation

Answer: D (decrease)

Explanation

By the law of diminishing marginal utility, each extra bottle gives less satisfaction than the one before.