GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The Law of equi-marginal utility tells that if price of commodity falls
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Same units of it will be bought
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More units of it will be bought
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Less units of it will be marginal bought
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Nothing of it will be bought
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Explanation:
Detailed explanation-1: -The law states that a consumer should spend his limited income on different commodities in such a way that the last rupee spent on each commodity yield him equal marginal utility in order to get maximum satisfaction.
Detailed explanation-2: -The law of diminishing marginal utility states that all else equal, as consumption increases, the marginal utility derived from each additional unit declines. Marginal utility is the incremental increase in utility that results from the consumption of one additional unit.
Detailed explanation-3: -Law of Diminishing Marginal Utility states that marginal utility tends to diminish as more and more units of a commodity are continuously consumed by a consumer.
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