Instructions: Move the slider at the bottom of the diagram to change the quantity consumed for all the available quantities on the to utility and marginal utility graphs. a) For the utility function above, if the price of the good is $4, what is the Marginal Utility per Dollar for the fourth unit consumed? 10 utils. b) For the utility function above, if the price of the good is $2, what is the Marginal Utility per Dollar for the second unit consumed? 22 utils. c) Would a rational consumer consume the eighth unit if it was free? No

Instructions: Move the slider at the bottom of the diagram to change the quantity consumed for all the available quantities on the to utility and marginal utility graphs. a) For the utility function above, if the price of the good is $4, what is the Marginal Utility per Dollar for the fourth unit consumed? 10 utils. b) For the utility function above, if the price of the good is $2, what is the Marginal Utility per Dollar for the second unit consumed? 22 utils. c) Would a rational consumer consume the eighth unit if it was free? No

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

TOTAL AND MARGINAL UTILITY
Reset
E UTILITY CALCULATIONS
Total Utility
Quantity
Consumed
70
Total
Marginal
Utility
Utility
60
50
40
22
30
22
20
18
10
40
14
4
6.
8
54
Quantity Consumed
Marginal Utility
10
20
4
64
6.
10
5
70
1
3
4
2
-10
72
-20
-2
Quantity Consumed
70
Quantity Consumed
-6
64
1
6.
8.

Remind Me Later
He
aphs - Diminishing Marginal Utility
Quantity Consumed
10
Marginal Utility
4
64
20
6.
10
70
5
6.
6.
72
-10
-2
-20
70
Quantity Consumed
-6
Quantity Consumed
8
64
6.
Instructions: Move the slider at the bottom of the diagram to change the quantity consumed for all the available quantities on the total
utility and marginal utility graphs.
a) For the utility function above, if the price of the good is $4, what is the Marginal Utility per Dollar for the fourth unit consumed?
10 utils.
b) For the utility function above, if the price of the good is $2, what is the Marginal Utility per Dollar for the second unit consumed?
22 utils.
c) Would a rational consumer consume the eighth unit if it was free? No

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