Scenario 5.1 The Demand for Noodles Is Given by the Following Equation

Multiple Choice

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10.
-If the marginal utility of a product is diminishing relative to the marginal utility of other products, then _____.

A) the consumer is in equilibrium
B) the consumer has been purchasing relatively less of the product
C) the consumer has been purchasing relatively more of the product
D) the price of the product must have increased
E) the price of the product must have decreased