In a Two-Variable Diagram, There Is a Straight Line Which

question 31

Multiple Choice

In a two-variable diagram, there is a straight line which is parallel to the horizontal axis. The slope of this line is

• A)infinite.
• B)indicative of an inverse relationship between two variables.
• C)indicative of a direct relationship between two variables.
• D)zero.

---

Definitions:

Marginal Utility

The augmented satisfaction or value someone derives from the consumption of an extra unit of a good or service.

Consumer Surplus

Consumer surplus represents the discrepancy between the total price consumers are prepared and able to spend on a product or service and the actual amount they end up paying.

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.

Marginal Utility

Marginal utility represents the additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.