Question

Suppose people are in consumer equilibrium buying 10,000 units of good X at a given price. Then the price of good X falls to $0. It follows that people will buy more of good X and that the marginal utility of the last additional unit they buy will be __________ the __________ of the 10,000th unit.

Answer 1

lower than; marginal utility

Step-by-step explanation:

lower than; marginal utility

It follows that people will buy more of good X and that the marginal utility of the last additional unit they buy will be Lower than the Marginal Utility of the 10,000th unit.