At a Level of Disposable Income of $0, Consumption Expenditure

question 49

Multiple Choice

At a level of disposable income of $0, consumption expenditure is $5000. Saving equals

• A) $2500.
• B) 0.
• C) - $5000.
• D) an amount that cannot be determined with the information available.

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Definitions:

Marginal Utility

The change in total satisfaction or pleasure derived from consuming one more unit of a good or service.

Total Utility

The overall satisfaction or benefit a customer receives from consuming a particular good or service.

Marginal Utility

The increased happiness or usefulness gained by consuming an additional unit of a good or service.

Total Utility

The total satisfaction received from consuming a particular quantity of a good or service.