Answer to Question #317804 in Microeconomics for Welcome

Question

Suppose the marginal utility and total utility of Peter's weekly consumption of bananas are both positive and that he subsequently consumes fewer bananas per week.What will happen to his marginal utility and total utility of apples?

Answer 1

When Peter consumes fewer bananas per week, the marginal utility of bananas increases. However, incase the consumption was increased we would expect the marginal utility of the apple to decrease.

Since Peter consumes fewer bananas than before, the total utility will decrease. Consumption of fewer bananas means more consumption of apple and hence it's marginal utility decreases.