Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 6, Problem 22SQ
To determine
The cause of the downward sloping
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Students have asked these similar questions
Along an individual demand curve for
food, which one of the following is not
held constant?
a.The consumer's income
b.The consumer's level of
utility
c.The price of all other goods
d.The consumer's utility
function
Which statement BEST describes the principle of diminishing marginal utility? As an individual consumes more of a good:
Select one:
a. the marginal utility will eventually become negative.
b. the total utility obtained will eventually become negative.
c. the addition to total utility obtained from the nth unit of the good will be less than that obtained from the immediately preceding unit of the good.
d. the total utility obtained will eventually fall.
According to the law of diminishing marginal utility, what happens as a consumer consumes more units of a good?
A. Total utility increases at a decreasing rate.B. Marginal utility increases at a decreasing rate.C. Total utility decreases at an increasing rate.D. Marginal utility decreases at an increasing rate.
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
- Activity 1. Answer the following questions: a. Illustrate and explain how consumer equilibrium is achieved using the indifference curve? b. How do we measure utility? Explain. c. Discuss how the demand elasticity of a product changes? Give examples.arrow_forwardexplain how utility analysis leads to the law of demand.arrow_forwardWhich 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.arrow_forward
- Need help with drawing the demand curvearrow_forwardDiminishing Marginal Utility. Explain the law of diminishing marginal utility Discuss an instance where you have experienced this. Do consumers continue to purchase something even though its marginal utility is decreasing? Why or why not?arrow_forwardComplete the following table and answer the questions below: a. At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? How do you know? b. “A rational consumer will purchase only 1 unit of the product represented by these data since that amount maximizes marginal utility.” Do you agree? Explain why or why not.c. “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.arrow_forward
- 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.arrow_forwardHow 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_forwardi. It is known that the indifference curve is convex. What does this tell you about the relationship between the goods? ii. Assuming that seafood is your favorite food. Would the law of diminishing marginal utility apply to your consumption of seafood? iii. Using examples, does an increase in income affect a consumer’s budget line? Does it impact their total utility.arrow_forward
- Explain three assumptions about the properties of consumers’ preferences.arrow_forwardThe following table shows the total utility gained from the consumption ofFanta Lemon in a week.left is quantity and right is total utility 1-20 2-35 3-45 4-53 5-58 6-58 7-481. Calculate the marginal utility. What do you observe?2. Sketch the total utility and marginal utility curves.3. If the price of Fanta Lemon increases from Rs.8 to Rs.10, how will itaffect its consumption?Explain your answer using the data above.arrow_forwardThe following table shows the total utility gained from the consumption of Fanta Lemon in a week. Quantity 1 2 3 4 5 6 7 Total utility 20 35 45 53 58 58 48 (i) Calculate the marginal utility. What do you observe? (ii) Sketch the total utility and marginal utility curves. (iii) If the price of Fanta Lemon increases from `Rs.8 to `Rs.10, how will it affect its consumption? Explain your answer using the data above.arrow_forward
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