Scenario 5.1 The Demand for Noodles Is Given by the Following Equation

question 127

Multiple Choice

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10.
-Due to the law of diminishing marginal utility, _____.

• A)the first unit of a product offers more satisfaction than the last unit of the same product
• B)the marginal utility curve is upward sloping
• C)when marginal utility becomes negative, total utility increases
• D)marginal utility is zero when total utility is zero
• E)when marginal utility becomes positive, total utility declines

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Definitions:

Total Revenue

The complete amount of income generated by the sale of goods or services related to the company's primary operations.

Quantity Demanded

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

Price

The amount of money expected, required, or given in exchange for something.

Peanut Farmers

Individuals or entities engaged in the cultivation and production of peanuts as a crop.