According to the law of diminishing marginal utility, as a consumer increases their consumption of a specific good, ceteris paribus, which of the following must occur?
The total utility obtained from the good will begin to fall immediately.
The addition to total utility from consuming one extra unit of the good decreases.
Total utility is maximised when marginal utility starts to decline.
The marginal utility from each additional unit consumed will remain constant.
45 exam-style questions on AQA A Level Economics 1.2 Individual economic decision making (A-level only), covering 1.2.1 Consumer behaviour, 1.2.2 Imperfect information, 1.2.3 Aspects of behavioural economic theory, and 1.2.4 Behavioural economics and economic policy. Each one has a worked solution and a mark scheme showing where the marks go.