Question

Assuming that diminishing marginal utility applies to both pomegranates and bananas, if Vanessa buys more pomegranates and fewer bananas, the _____ utility of pomegranates will _____, and the _____ utility of bananas will _____.

A) marginal; rise; total; rise
B) total; fall; marginal; rise
C) marginal; rise; marginal; fall
D) marginal; fall; marginal; rise

Answer 1

D. marginal utility; fall; marginal utility; rise

Step-by-step explanation:

Assuming that diminishing marginal utility applies to both pomegranates and bananas, if Vanessa buys more pomegranates and fewer bananas, the MARGINAL UTILITY of pomegranates will FALL, and the MARGINAL UTILITY of bananas will RISE.

Marginal utility refers to the additional satisfaction or utility obtained by consuming an extra unit of some product. As you consume more of a certain product, the utility you receive from every extra unit of that product will decrease.