Utility is a type of function that occurs in economics. When a consumer receives x units of a certain product, a certain amount of pleasure, or utility U, is derived. The graph represents a typical utility function. a) Find the average rate of change of U as x changes from 0 to 1; from 1 to 2; from 2 to 3; from 3 to 4. b) Why do the average rates of change decrease as x increases? a) The average rate of change of U as x changes from 0 to 1 is (Type an integer or a decimal.) Utility (pleasure uni AU 200- 150- 100- 50- 0 (2,106) (1.67) I (3,134) (4,156) 2 Number of units of product 4 X G

Utility is a type of function that occurs in economics. When a consumer receives x units of a certain product, a certain amount of pleasure, or utility U, is derived. The graph represents a typical utility function. a) Find the average rate of change of U as x changes from 0 to 1; from 1 to 2; from 2 to 3; from 3 to 4. b) Why do the average rates of change decrease as x increases? a) The average rate of change of U as x changes from 0 to 1 is (Type an integer or a decimal.) Utility (pleasure uni AU 200- 150- 100- 50- 0 (2,106) (1.67) I (3,134) (4,156) 2 Number of units of product 4 X G

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 16SQ

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Question

Utility is a type of function that occurs in economics. When a consumer receives x units of a certain product, a certain amount of pleasure, or utility U, is derived. The graph represents a typical
utility function.
a) Find the average rate of change of U as x changes from 0 to 1; from 1 to 2; from 2 to 3; from 3 to 4.
b) Why do the average rates of change decrease as x increases?
a) The average rate of change of U as x changes from 0 to 1 is.
(Type an integer or a decimal.)
C
Utility (pleasure units)
AU
200-
150-
100-
50-
0
(1,67)
(2,106)
I
(3,134)
(4,156)
2
Number of units of product
4
X

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