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

question 140

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.
-The law of diminishing marginal utility states that:

• A)the marginal utility of the last unit consumed of any good is less than the marginal utility of all other products consumed.
• B)as more of a good or service is consumed, the marginal utility derived from it, relative to other products, increases.
• C)as more of a good or service is consumed, the marginal utility derived from it decreases.
• D)as more of a good or service is consumed, the marginal utility derived from it, relative to other products, remains the same.
• E)the marginal utility of all products consumed must be equal.

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