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؟
- Total utility is maximized
- Marginal utility increases
- Total utility increases
- 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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