Suppose People Are in Consumer Equilibrium Buying 10,000 Units of Good

Multiple Choice

Suppose people are in consumer equilibrium buying 10,000 units of good X at a given price. Then the price of good X falls to $0. It follows that people will buy more of good X and that the marginal utility of the last additional unit they buy will be __________ the __________ of the 10,000th unit.

A) lower than; marginal utility
B) greater than; average utility
C) the same as; marginal utility
D) greater than; marginal utility
E) none of the above