Which of the following are true regarding the law of diminishingmarginal utility?The more a person consumes of a given good, the less satisfaction sheobtains from consuming additional units of that good.At a point hight up along the Y axis, the consumer will be willing to giveup very little of good Y for one more unit of good X.At a point far to the right along the X axis, the consumer will be willingto give up very little of good X for every additional unit of good Y.As the consumer moves along an indifference curve, consuming ever lessof good Y and ever more of good X, she will be willing to give ever less ofgood Y for every additional unit of good X.

The marginal utility derived from each additional unit decreases as consumption increases, according…

Answered: Which of the following are true…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following are true regarding the law of diminishing
marginal utility?
The more a person consumes of a given good, the less satisfaction she
obtains from consuming additional units of that good.
At a point hight up along the Y axis, the consumer will be willing to give
up very little of good Y for one more unit of good X.
At a point far to the right along the X axis, the consumer will be willing
to give up very little of good X for every additional unit of good Y.
As the consumer moves along an indifference curve, consuming ever less
of good Y and ever more of good X, she will be willing to give ever less of
good Y for every additional unit of good X.

Expert Solution

Step 1

The marginal utility derived from each additional unit decreases as consumption increases, according to the law of diminishing marginal utility.
"Utility" is an economic term that means "satisfaction or happiness." According to the Law of Diminishing Marginal Utility, the marginal utility of consuming each additional unit of a commodity decreases as its consumption increases, while consumption of other commodities remains constant.

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