3 Views

Question : The Law of Diminishing Marginal Utility will not hold good if the income of the consumer:

Option 1: Increases

Option 2: Decreases

Option 3: Remains constant

Option 4: Either a) or b)


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Either a) or b)


Solution : The correct answer is (d) Either a) or b).

The Law of Diminishing Marginal Utility assumes that the income of the consumer remains constant. When the consumer's income increases, they have the ability to purchase more units of a good, which can affect their marginal utility. If the consumer's income decreases, they may have to reduce their consumption of the good, which can also affect their marginal utility. In both cases, the law may not hold true as the change in income can alter the consumer's preferences and the utility derived from each unit of the good. Therefore, if the income of the consumer changes, either by increasing or decreasing, the Law of Diminishing Marginal Utility may not apply.

Related Questions

UPES Integrated LLB Admission...
Apply
Ranked #28 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS University Rankings | 16.6 LPA Highest CTC
SLAT 2025 - The Symbiosis Law...
Apply
Conducted by Symbiosis International (Deemed University) | Ranked #5 in Law by NIRF | Ranked #2 among best Pvt Universities by QS World Rankings
Jindal Global Law School Admi...
Apply
Ranked #1 Law School in India & South Asia by QS- World University Rankings | Merit cum means scholarships
Symbiosis Law School Pune Adm...
Apply
NAAC A++ Accredited | Ranked #5 by NIRF
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC
Woxsen University | Law Admis...
Apply
BBA -LLB (Hons.) & BA -LLB (Hons.) @ Woxsen University. BCI approved | Industry Endorsed Curriculum
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books