Goods that are abundant in supply usually have low

Analyze the question: The question asks which type of utility is low when a good is abundant (plentiful) in supply.

Explain the concept:

• Total utility is the overall satisfaction from consuming all units of a good.
• Marginal utility is the extra satisfaction from consuming one more unit.
• Law of diminishing marginal utility: as you consume more units of a good, the additional satisfaction from each extra unit falls.

Step-by-step solution:

1. When a good is abundant, consumers have plenty of it and can consume many units.
2. As consumption rises, each additional unit adds less satisfaction than the one before.
3. So the satisfaction from the last (marginal) unit becomes low. Water in a village with a flowing stream is a good example: one more cup adds almost no extra satisfaction.
4. Total utility, by contrast, usually keeps rising (at a slowing rate) as more units are consumed, so it is not low. This rules out A.
5. Average utility isn't the concept the question is testing, and time utility relates to having goods available at the right time, so C and D do not fit.

Answer: The correct option is B. marginal utility.

Exam tip: Remember "Plenty = Poor marginal utility." Whenever a question links abundance or excess consumption to satisfaction, think of the law of diminishing marginal utility. Also, it is marginal utility that falls first, while total utility can still be rising.