If the Utility Function (U)between Food (F)and Clothing (C)can Be

question 58

Multiple Choice

If the utility function (U) between food (F) and clothing (C) can be represented as U = ,holding the consumption of clothing fixed,the utility will

• A) increase at an increasing speed when more food is consumed.
• B) increase at an decreasing speed when more food is consumed.
• C) increase at an constant speed when more food is consumed.
• D) remain the same.

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Definitions:

Total Utility

The entire pleasure derived from using a certain total volume of a good or service.

Total Utility

Total utility is the total satisfaction or benefit a consumer receives from consuming a particular quantity of goods or services.

Diminishing Marginal Utility

The decrease in satisfaction or utility that a person derives from consuming each additional unit of a good or service.

Demand Curves

A graphical representation that shows the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at various prices.