As Long as Total Utility Is Increasing, We Know That

question 87

Multiple Choice

As long as total utility is increasing, we know that marginal utility is:

• A) positive.
• B) decreasing.
• C) increasing.
• D) negative.

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Definitions:

Inferior Good

A good or service whose consumption declines as income rises, prices held constant.

Positive

Characterized by or denoting an effect, result, or attribute that is beneficial or conducive to growth or well-being.

Constant Elasticity

A condition where the elasticity, or responsiveness, of a variable does not change regardless of the level of the variable being examined.

Linear Demand

A market demand situation where a product's price and the quantity demanded have a linear relationship.