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2 marksTheory of Consumer Demand

CAPE Economics Unit 1 · 2006 · Paper 1 · Question 4(c)

Explain why a consumer may purchase more of a commodity if its price is less than its marginal utility, all things being equal.

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Other parts of this question

  1. 4(a)Define the term 'marginal utility'.[2 marks]
  2. 4(b)(i)Explain how the purchase of additional units of a commodity will affect total utility.[1 mark]
  3. 4(b)(ii)Explain how the purchase of additional units of a commodity will affect marginal utility.[1 mark]

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