Economics 9708 · AS & A Level · Utility and rational consumer behaviour

Utility and rational consumer behaviour — practice question

What does the equi-marginal principle mean?

  • AAs consumption of a product increases, the satisfaction from consumption of the product decreases by an equal amount.
  • BConsumers maximise utility where their marginal valuation for each product consumed is the same.
  • CThe total satisfaction received by consumers from consumption of a product is constant.
  • DThe marginal utility derived by consumers from the consumption of one more unit of a product is constant.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI