Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 6, Problem 1SQ
To determine
The meaning of term utility.
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What is the definition of marginal utility?
A.
The average utility from consuming a good or service multiplied by the number of units of that good or service consumed.
B.
Utility measured in utils.
C.
The utility from consuming a good or service divided by the number of units of that good or service consumed.
D.
The change in utility from consuming an additional unit of a good or service.
E.
The enjoyment or satisfaction people receive from consuming goods and services.
Which of the following statement is true?A. Marginal Utility is the additional satisfaction gained by the consumer in consuming the first glass of water.B.The value of a glass of water to a consumer depends on its average revenue.C.The marginal utility of pearl is higher than water.D.The additional utility of consuming one more glass of water is greater than buying one more pearl.
If a consumer's marginal utility was 10 utils per unit of meat and 5 utils per unit of potatoes:
a. the consumer should purchase less potatoes and more meat to maximize his satisfaction.
b. the consumer would be in equilibrium if the per-unit price of meat was twice the price of potatoes.
c. the consumer would be in equilibrium if the price per unit of meat was half the price of potatoes.
d. the consumer's total utility could be increased by consuming more potatoes and less meat until the marginal utilities of the two goods were equal.
Chapter 6 Solutions
Economics For Today
Ch. 6.1 - Prob. 1YTECh. 6.1 - Prob. 2YTECh. 6.2 - Prob. 1YTECh. 6.A - Prob. 1SQPCh. 6.A - Prob. 2SQPCh. 6.A - Prob. 3SQPCh. 6.A - Prob. 1SQCh. 6.A - Prob. 2SQCh. 6.A - Prob. 3SQCh. 6.A - Prob. 4SQ
Ch. 6.A - Prob. 5SQCh. 6.A - Prob. 6SQCh. 6.A - Prob. 7SQCh. 6.A - Prob. 8SQCh. 6.A - Prob. 9SQCh. 6.A - Prob. 10SQCh. 6.A - Prob. 11SQCh. 6.A - Prob. 12SQCh. 6.A - Prob. 13SQCh. 6.A - Prob. 14SQCh. 6.A - Prob. 15SQCh. 6 - Prob. 1SQPCh. 6 - Prob. 2SQPCh. 6 - Prob. 3SQPCh. 6 - Prob. 4SQPCh. 6 - Prob. 5SQPCh. 6 - Prob. 6SQPCh. 6 - Prob. 7SQPCh. 6 - Prob. 8SQPCh. 6 - Prob. 9SQPCh. 6 - Prob. 10SQPCh. 6 - Prob. 1SQCh. 6 - Prob. 2SQCh. 6 - Prob. 3SQCh. 6 - Prob. 4SQCh. 6 - Prob. 5SQCh. 6 - Prob. 6SQCh. 6 - Prob. 7SQCh. 6 - Prob. 8SQCh. 6 - Prob. 9SQCh. 6 - Prob. 10SQCh. 6 - Prob. 11SQCh. 6 - Prob. 12SQCh. 6 - Prob. 13SQCh. 6 - Prob. 14SQCh. 6 - Prob. 15SQCh. 6 - Prob. 16SQCh. 6 - Prob. 17SQCh. 6 - Prob. 18SQCh. 6 - Prob. 19SQCh. 6 - Prob. 20SQCh. 6 - Prob. 21SQCh. 6 - Prob. 22SQCh. 6 - Prob. 23SQCh. 6 - Prob. 24SQCh. 6 - Prob. 25SQ
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Similar questions
- When given the marginal utility of the first five units of a product, we can calculate the total utility by a. finding the difference between the fourth and fifth units. b. finding the difference between the first and fifth units. c. looking at the marginal utility of the fifth unit. d. adding the fourth and fifth units. e. adding the marginal utilities of the first five unitsarrow_forward1. Generally speaking, as more of a good is purchased by an individual consumer, marginal utility A. increases and total utility increases. B. increases and total utility decreases. C. decreases and total utility increases. D. decreases and total utility decreases.arrow_forward3. A consumer is maximizing his satisfaction. Due to a change in tastes, his marginal utility increases for one of the products he is consuming. As he acts, what will happen to the marginal utilities of other goods that he is consuming? Those goods’ marginal utilities will: a. increase and then eventually decrease b. decrease and then eventually increasec. increase.d. decrease.e. not change.arrow_forward
- 3. Total utility is the Select one: A. Marginal utility multiplied by the price of the good. B. total satisfaction from the consumption of a good divided by the price of that good. C. change in marginal utility a person derives from the consumption of a good. D. sum of the amounts of satisfaction a person receives from consuming a good.arrow_forward1. What is the Total Utility of the second unit? 2. What is the Marginal utility of the third, fourth and the fifth unit? 3. Explain the relationship between Total Utility and Marginal Utility. 4. At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? How do you know? 5. “It is possible that a rational consumer will not purchase any units of the product represented by these data.” Do you agree? Explain why or why not. 6. In the last decade or so there has been a dramatic expansion of small retail convenience stores (such as 7 Eleven, Kwik Shop, and Circle K), although their prices are generally much higher than prices in large supermarkets. What explains the success of the convenience stores?arrow_forwardQuestion 18 An increase in the price of product A will: cause utility-maximizing consumers to buy more of A. decrease the marginal utility per dollar spent on A. not affect the marginal utility per dollar spent on A. increase the marginal utility per dollar spent on A.arrow_forward
- Which of the following statements is NOT true? a. Utility measures the satisfaction obtained from a good b. Total utility is the satisfaction from the entire consumption of a good C. Both represent the satisfaction obtained from most all goods and services d. Marginal utility is the additional satisfaction from consuming the last unit of a goodarrow_forward(9) What determines the utility an individual receives from consuming a good? Select one: a. The individual’s own preferences. b. The demand and supply curves for that good. c. The producers conducting customer feedback surveys of that good and the feedback provided. (10) Denzel bought headphones two months ago, Solo2 Beats by Dre, for $130. He gives them to his little brother and goes online to buy another for himself but they are now $160. What is the percentage change in the headphone’s price? Select one: a. 23% b. 30% c. 21%arrow_forwardQuestion 4arrow_forward
- How does the law of diminishing marginal utility relate to changing income? Select one: a. The marginal benefit of an extra dollar of income rises as income rises. b. The marginal benefit of an extra dollar of income falls as income rises. c. The total utility gained from a small income is higher than the total utility gained from a high income. d. The total utility gained from a high income is higher than the total utility gained from a low income.arrow_forwardAccording to the law of diminishing marginal utility, marginal utility of a good declines as more of it is consumed in a given time period. According to this law, which of the following statement is true? a. The more I go to school, the more I want to do something else b. Since we need gasoline more than we need paper, gasoline is more valuable c. Peas give me no satisfaction, so I won't buy any d. The more coffee I drink, the more I want to drinkarrow_forwardMarginal utility is the Select one: A. change in total utility obtained by consuming another unit of a good divided by the change in the price of that good. B. total utility associated with the consumption of a certain number of units of a good divided by the number of units consumed. C. change in total utility obtained by consuming one more unit of a good. D. sensitivity of consumer purchases of a good to changes in the price of that good.arrow_forward
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