The Following Table Shows Mia's $ Marginal Utility for Litres

question 120

Multiple Choice

The following table shows Mia's $ marginal utility for litres of soya milk:

-If the price of soya milk is $8 per litre,what is the maximum number of litres that Mia will buy?

• A)0.
• B)1.
• C)2.
• D)3.
• E)7.

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Definitions:

Horizontal Sum

The process of adding the quantities demanded by all individuals at different price levels to determine the total market demand at each price.

Vertical Sum

A concept typically used in the context of aggregating demand curves, where the quantities at each price level are summed vertically across different consumers or markets.

Quantity Demanded

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

Real Incomes

The amount of goods and services that can be purchased with money income, taking into account the effects of inflation on purchasing power.