Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 6, Problem 4SQ
To determine
Impact of consumption of a commodity repeatedly on total and marginal utilities.
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According 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.
The law of diminishing marginal utility says that...
A. as a person consumes more and more of a certain good, the addition to total satisfaction decreases.
B. as a person's income increases, the satisfaction associated with each additional dollar earned increases.
C. as a person consumes more and more of a certain good, the additional satisfaction increases.
D. as a person's income increases, the satisfaction associated with each dollar spent decreases.
Assume that this law holds for Quincy with ice cream and pretzels....
Quincy decides to eat less ice cream and more pretzels. As a result,
A. Quincy's marginal utility of both ice cream and pretzels increases.
B. Quincy's marginal utility of ice cream decreases, and his marginal utility of pretzels increases.
C. Quincy's marginal utility of ice cream increases, and his marginal utility of pretzels decreases.
D. Quincy's marginal utility of both ice cream and pretzels decreases.
Let 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 situation
Chapter 6 Solutions
Micro 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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- Law of Diminishing Marginal UtilityIndicate whether each of the following statements is true or false. Explain why.A.The law of diminishing marginal utility states that as an individual increases consumption of a given product within a set period of time, the utility gained from consumption eventually declines.B.Marginal utility measures the added satisfaction derived from a one-unit increase in consumption, holding consumption of other goods and services constant.C.When goods are relatively scarce, the law of diminishing marginal utility means that the added value of another unit of goods will be small in relation to the added value of another unit of services.D.The law of diminishing marginal utility gives rise to a downward-sloping demand curve for all goods and services.arrow_forwardWhich of the following choices best explains how marginal utility causes the average person to eat more food at a buffet than at an a la carte menu where you pay for each item that you want? A. Spending money on food has a very low marginal utility, so customers at a la carte restaurants will generally only buy the cheapest options (which taste worse), causing them to eat less. B. A consumer will eat until the next serving's benefit is less than its cost. At an a la carte restaurant, a consumer will stop ordering even when the marginal utility of the next serving is positive. At an all-you- can-eat buffet, the next serving always costs zero. Therefore, a consumer won't stop until the next bite provides negative marginal utility. C. People go to buffets because they want to eat more. Thus, the customers at buffets are more inclined to eat more food. Marginal utility does not play a factor in how much they eat. incorrect D. Because consumers choose their own portion sizes at a buffet,…arrow_forwardIndicate whether the statement is True or False, and briefly explain why: A. Marginal benefit equal to marginal cost is the point where consumers are maximizing their satisfaction within their budget. B. The marginal benefit is equal to the marginal utility you obtain from consuming one extra unit of the good. C. What matters for consumers when they want to decide to buy one more unit of a good is how much utility they got from all the units they consumed before. D. Elasticity can be related to the measure of a percentage change in quantity demanded divided by the percentage change in the price of a good.arrow_forward
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