When the slope of the total utility curve is declining; the marginal utility of a consumer will be increasing if he?

A. stops consuming more of the commodity
B. reduces the quantity consumed
C. increases the quantity consumed
D. consumes more of another commodity

Correct Answer:

Option B – reduces the quantity consumed

Explanation

Marginal utility refers to the additional satisfaction a consumer derives from the consumption of an additional unit of a product. As more and more of a product is consumed by that consumer, the utility/satisfaction he gets reduces.

Therefore, the marginal utility of a product is greater when a person has fewer of them, but as the accumulation of goods increases, the marginal utility of additional goods declines.