I have a question about the marginal utility theory

If someone is at consumer equilibrium consuming normal goods, will an increase to income increase total utility

consumption of goods?

An increase in income will increase total utility as well as consumption of normal goods. Consumption of inferior goods would decline.

  1. 👍 0
  2. 👎 0
  3. 👁 49
asked by Dick

Respond to this Question

First Name

Your Response

Similar Questions

  1. Microeconomics: Consumer Theory

    If the MU per dollar spent on wings is greater than the MU per dollar spent on pizza, JP will spend that dollar on wings because it adds more to his TU than if he spent it on pizza, i.e., he’ll buy more wings and less pizza.

    asked by Anonymous on November 30, 2008
  2. micro econ

    The equimarginal rule __________. equates the marginal utility per dollar spent on each good purchased states that in order to maximize utility the consumer should buy more of those goods with a high marginal utility states that

    asked by Angela on July 24, 2018
  3. microeconomic

    Suppose you consume three pounds of beef and five pounds of pork per month. The price of beef is $ 1.50 per pound, and pork is $ 2.00 per pound. Assuming you have studied economics and achieved consumer equilibrium, what is the

    asked by snizhanna on March 11, 2012
  4. Marginal Theory Predictions

    Quick Question For a consumer that is at consumer equilibrium purchasing normal goods: will an increase to income increase total utility to the consumer?

    asked by Dick on December 13, 2006
  5. Economics

    What is more important to the consumer: Marginal utility or marginal utility per dollar and why

    asked by Kevin on July 23, 2008
  6. Managerial Economics/Math

    I'm working on some HW for my MBA Managerial Economics class. I've got one problem down to the end, but I'm stuck. Any help would be greatly appreciated. And, of course, if you could check my work on a & b, that would be

    asked by klynn on October 5, 2007

    Question One: Assume Susan has $80 to spend on candies and chips each week and both goods must be purchased whole units (no fraction). The price of candies is $8 each and chips is $20. CANDIES CHIPS # of cans Total Utility (TU)

    asked by KERRY on March 8, 2016
  8. Microeconomics (margin Utility) need clarification

    Someone was kind enough to help me with this question, but i was still confused on how they helped me with the first part of my question. The original question was: You go to an auction and set a maximum price of $100 you are

    asked by David on October 15, 2008
  9. Micro Economics

    Briefly explain the following: (a)Economic cost and accounting cost. (b)Free market economy and mixed economy. (c)Marginal utility theory and indifference curves analysis. Please note that we don't do students' homework for them.

    asked by Christine on March 23, 2007
  10. microeconomics

    This week you have gone to two parties. Assume the total utility you gained from these parties is 100utils. Then you go to a third party, and your total utility rises to 110utils. What is the marginal utility of the third party

    asked by snizhanna on March 11, 2012

More Similar Questions