ECONOMICS
DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
A shortage of sidewalks makes scooters less desirable
|
|
|
Scooters become less useful as they get old and start to rust
|
|
|
Someone who has one scooter will have less use for another
|
|
|
People with cars have less use for scooters that people without cars
|
Detailed explanation-1: -Food is a common example of a good with diminishing marginal utility. Think of an apple, for example. If you’re starving, an apple offers pretty high value. But the more apples you eat, the less hungry you become-Making each additional apple less valuable.
Detailed explanation-2: -For example, an individual might buy a certain type of chocolate for a while. Soon, they may buy less and choose another type of chocolate or buy cookies instead because the satisfaction they were initially getting from the chocolate is diminishing.
Detailed explanation-3: -Explanation: Law of diminishing marginal utility states that as and when a consumer consumes more and more of a product, the satisfaction derived from the subsequent units consumed falls.
Detailed explanation-4: -Answer and Explanation: The correct option is: (b) The more a person consumes a product. The smaller becomes the additional utility that she receives as a result of consuming an additional unit of the product.