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
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TOTAL AND MARGINAL UTILITY
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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.
Transcribed Image Text: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
Transcribed Image Text: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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