Consider a consumer whose preferences for a specific good (x) and money for all other goods (m) can be represented by the utility function u(x, m) = 20√x + m. If this consumer's income significantly increases, while the price of good x remains constant, their marginal willingness to pay for an additional unit of good x will also increase.
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Consider a consumer whose preferences for a specific good (x) and money for all other goods (m) can be represented by the utility function u(x, m) = 20√x + m. If this consumer's income significantly increases, while the price of good x remains constant, their marginal willingness to pay for an additional unit of good x will also increase.