-In the Above Figure,while Drawing the Line Showing the Relationship

question 198

Multiple Choice

-In the above figure,while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold,the

• A) price of a pound of pecans does not change.
• B) price of a pound of peanuts does not change.
• C) the quantity of peanuts that farmers supply does not change.
• D) Both answers A and B are correct.
• E) Both answers B and C are correct.

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Definitions:

Total Utility

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

Marginal Utility

The change in satisfaction or benefit derived from 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.

Diminishing Marginal Utility

The decrease in satisfaction or usefulness obtained from each additional unit of consumption.