Marginal Utility Is the Change in Total Utility That Results

question 285

Multiple Choice

Marginal utility is the change in total utility that results from

• A) an increase in the price of the good.
• B) a change in the budget line.
• C) a one-unit change in the quantity of a good consumed.
• D) a decrease in the price of the good.
• E) an increase in the consumer's income.

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Definitions:

Indifference Curve Analysis

A graphical representation used in microeconomics to show combinations of two goods that provide the consumer with equal levels of satisfaction or utility.

Numerically Measurable

Refers to data or quantities that can be quantified and expressed in numerical terms, facilitating analysis and comparison.

Utility Analysis

An economic technique for measuring the satisfaction or benefit derived by consumers from consuming goods and services.

Indifference Curve

A graph showing different combinations of two goods that provide equal satisfaction and utility to a consumer.