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WAEC Economics 2013 Question 39

Question 39

Theory of Consumer Behaviour

If a commodity has a high marginal utility, its market price will be

  1. A.stable.
  2. B.high.
  3. C.zero.
  4. D.constant.
Show the answer and explanation

Answer: B (high.)

Explanation

People will pay more for a good whose last unit gives high satisfaction, so its price is high.