Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 6, Problem 6SQ
To determine
The law of utility.
Expert Solution & Answer
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Students have asked these similar questions
The statement “As more of a good is consumed,the utility a person derives from each additionalunit diminishes” is known as thea. water and diamond paradox.b. law of diminishing marginal utility.c. law of total utility.d. marginal-utility-to-price ratio equalization rule.
explain how utility analysis leads to the law of demand.
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.
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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- 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.arrow_forwardLet us consider the case of Saiful who derives positive marginal utility from consuming apples. In the initial situation, Saiful consumed 3 apples per week. Now Saiful decides to consume 2 apples per week. What will be the effect of Saiful's decision of consuming 2 apples per week on his total utility and marginal utility? A. Total utility will increase and marginal utility will increase compared to the initial situation B. Total utility will decrease and marginal utility will increase compared to the initial situation C. Total utility will increase and marginal utility will decrease compared to the initial situation D. Total utility will decrease and marginal utility will decrease compared to the initial situationarrow_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_forward
- The 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_forwardMarginal utility is (please write out your answer--don't just indicate the letter of your answer choice--I'll deduct a point if you do): a. always greater than total utility b. not as good as a normal utility c. not related to total utility d. the change in total utility derived from consuming one more unit of a goodarrow_forwardWhich of the following statements is correct? ___ Marginal utility is the sum of total utility. ____ Total utility is the sum of marginal utilities. ____ Total utility is the product of multiplying price times marginal utility. ____ Total utility is the change in marginal utility as quantity consumed increases.arrow_forward
- Which among the following is not true about utility? Select one: a. The terms utility and usefulness are same b. Utility is measured in imaginary units c. Utility is want satisfying power of a good d. None of the answers are correct e. Utility of a product varies from person to personarrow_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_forwardAccording 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.arrow_forward
- Complete 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_forwardAccording to the law of diminishing marginal utility: a. as you consume less of something, your total utility will decrease. b. as you consume less of something, your marginal utility from consuming that good will increase c. you should never consume more of something if your marginal utility is decreasing. d. If your total utility is increasing as you consume more of something, then your marginal utility must be increasing as well.arrow_forwardQ1. You have Rs.10. The price of samosa is Rs.1 per unit. The price of a steak sandwich is Rs.3 The utility received from consuming samosa and steak is given below. a. How many samosas and steak sandwiches should be bought to maximize utility? Calculate utility maximizing quantities of samosas and steak sandwiches when income equals Rs.10 and the price of beer is Rs.1 and the price of steak sandwiches is Rs.3 using the utility b. maximizing rule No. of TU of samosa MU of No. of steaks TU of steaks MU of steaks samosas samosa 1 15 1 24 2 24 45 32 63 4 39 4 75 45 84 47 87arrow_forward
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