This Graph Shows One Consumer's Demand for Ice Cream at the Student

question 47

Multiple Choice

This graph shows one consumer's demand for ice cream at the student union:
Joe is one of the students whose demand is shown.Joe buys more ice cream when the price is $2.00 than when the price is $3.00 because

• A) Joe cannot afford $3.00 for a scoop of ice cream.
• B) Joe has more consumer surplus when price is $3.00.
• C) the marginal utility Joe gets from his fifth scoop of ice cream is less than the marginal utility Joe gets from other things that cost $3.00.
• D) Joe does not experience diminishing marginal utility for ice cream consumption when it is only $2.00 per scoop but does when it is $3.00.

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