Total Utility Describes

question 157

Multiple Choice

Total utility describes

• A) the benefit gained from all consumption.
• B) an increase in consumption multiplied by the gain in utility.
• C) total consumption multiplied by marginal utility.
• D) total consumption divided by marginal utility.

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Definitions:

Price Ceiling

a legally established maximum price for goods or services, aimed at keeping prices from rising to high levels.

Equilibrium

A condition in markets where supply equals demand, and there is no external pressure for change.

Shortage

The insufficiency of a good or service that occurs when the quantity demanded exceeds the quantity supplied; shortages occur when the price is below the equilibrium price.

Price Elasticity of Demand

The rate at which demand for a product responds to its price being altered.