passwella.
Menu

WAEC Economics 2008 Question 5

Question 5

Theory of Consumer Behaviour

The theory of diminishing marginal utility states that as more units of a commodity are consumed, the

  1. A.satisfaction from an extra unit decreases
  2. B.satisfaction from an extra unit rises
  3. C.satisfaction from an extra unit remains constant
  4. D.total satisfaction from the good remains the same.
Show the answer and explanation

Answer: A (satisfaction from an extra unit decreases)

Explanation

Each additional unit consumed adds less satisfaction than the one before.