If Joey Kobayashi Experiences Diminishing Marginal Utility from Eating Hot

question 143

Multiple Choice

If Joey Kobayashi experiences diminishing marginal utility from eating hot dogs then

• A)his total utility from eating hot dogs is negative.
• B)the marginal utility from the next hot dog Joey eats will be negative.
• C)the additional satisfaction he receives from eating another hot dog will be less then the satisfaction he received from his eating his last hot dog.
• D)Joey is maximizing the marginal utility per dollar he receives from eating hot dogs.

---

Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded for it at those prices, typically downward sloping.

Law of Diminishing

A principle that states the incremental utility or benefit gained from consuming additional units of a good or service tends to decrease with each additional unit consumed.