Refer to the Following Figure to Answer the Following Questions

question 22

Multiple Choice

Refer to the following figure to answer the following questions:

-This consumer experiences diminishing marginal utility

• A) over all levels of consumption.
• B) up until she consumes her fifth taco.
• C) up until she consumes her sixth taco.
• D) from her sixth taco on.
• E) for her fifth and sixth tacos only.

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Definitions:

Ration Coupons

Tokens or certificates that allow the holder to purchase a certain amount of a specific product, typically used during shortages or in a controlled economy.

Price Floor

A government or regulatory-imposed minimum price that can be charged for goods and services, typically above the equilibrium price, to prevent market prices from falling too low.

Price Ceiling

A legal maximum price that can be charged for a good or service, above which it cannot rise.

Surplus

The situation in which the quantity of a good supplied is greater than the quantity demanded at the current price.