What is the relationship between marginal utility of money and consumer behavior?

Economics Marginal Utility Questions



80 Short 80 Medium 45 Long Answer Questions Question Index

What is the relationship between marginal utility of money and consumer behavior?

The relationship between marginal utility of money and consumer behavior is that as the marginal utility of money decreases, consumers are less willing to spend additional money on a particular good or service. This means that consumers are more likely to allocate their limited resources towards goods or services that provide higher marginal utility, resulting in a more efficient allocation of resources.