Asked by
ICONIC_ SALEHYT AMEER
on Oct 12, 2024
Verified
Statement I: If you knew a person's demand schedule,you could figure out her marginal utility schedule.
Statement II: As a person consumes more and more of a service,her total utility rises and her marginal utility declines.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Marginal Utility
The additional satisfaction or utility received from consuming one more unit of a good or service.
Demand Schedule
A demand schedule is a table that lists the quantity of a good that consumers are willing to purchase at various prices.
Total Utility
The overall satisfaction or benefit a consumer receives from consuming a certain quantity of a good or service.
- Acquire an understanding of the role total and marginal utility play in determining consumption habits.
- Learn the role of marginal utility in determining choices in the context of utility maximization.
- Implement the concept of utility to explicate consumer decision-making processes and market peculiarities like the water-diamond paradox.
Verified Answer
SW
Learning Objectives
- Acquire an understanding of the role total and marginal utility play in determining consumption habits.
- Learn the role of marginal utility in determining choices in the context of utility maximization.
- Implement the concept of utility to explicate consumer decision-making processes and market peculiarities like the water-diamond paradox.