Total Utility May Be Determined by

question 4

Multiple Choice

Total utility may be determined by

• A)multiplying the marginal utility of the last unit consumed by the number of units consumed.
• B)summing the marginal utilities of each unit consumed.
• C)multiplying the marginal utility of the last unit consumed by product price.
• D)multiplying the marginal utility of the first unit consumed by the number of units consumed.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified period of time.

Normal Good

A good or service whose consumption increases when income increases and falls when income decreases, price remaining constant.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, signifying how the demand for a good can stretch or change.

Senior-Citizen Discounts

Reduced prices offered to elderly individuals, typically those aged 65 and over, as a benefit for their age.