Which of the Following Statements Illustrates Diminishing Marginal Utility

question 36

Multiple Choice

Which of the following statements illustrates diminishing marginal utility?

• A)An extra dollar of income to a poor person provides that person with more additional utility than does an extra dollar to a rich person.
• B)An extra dollar of income to a poor person provides that person with less additional utility than does an extra dollar to a rich person.
• C)An extra dollar of income to a poor person provides that person with the same additional utility as does an extra dollar to a rich person.
• D)An extra dollar of income to a poor person provides that person with the same total utility as does an extra dollar to a rich person.

---

Definitions:

Rental Apartments

Housing units that are leased to tenants for a set period of time as defined in a rental agreement.

Inverse Demand Function

A mathematical representation showing how the price of an item needs to adjust to achieve a certain level of demand; it's the reverse of the demand function.

Inverse Supply

The inverse supply curve represents the relationship between the price of a good and the quantity supplied, plotted with price on the vertical axis and quantity on the horizontal.

Inverse Demand Function

A mathematical function that expresses the price of a good as a function of the quantity demanded.