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Marginal utility theory assumes that when Sally must consume less of a good that she likes, her?
جب سیلی کسی پسندیدہ چیز کو کم استعمال کرتی ہے تو اس کی کیا چیز بڑھتی ہے؟
  1. Total utility is maximized
  2. Marginal utility increases
  3. Total utility increases
  4. None of these
Explanation
  • Marginal utility theory explains satisfaction from consuming goods.
  • As a person consumes less of a good, each unit becomes more valuable.
  • This follows the law of diminishing marginal utility (reverse case).
  • Scarcity of a liked good increases its importance.
  • Therefore, marginal utility rises when consumption decreases.

Last verified on 22-04-2026

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