Asked by
Makiah Bouchee
on Dec 08, 2024Verified
For Adrian, the marginal utility of the 5th energy drink in a day is positive and the marginal utility of the 6th energy drink in a day is zero. This
A) implies that Adrian's demand curve for energy drinks per day will become upward sloping at 6 energy drinks per day.
B) is impossible because each additional unit of consumption of any good must provide positive marginal utility.
C) implies that at a zero price Adrian's demand curve will intersect the quantity axis at 6.
D) implies that Adrian maximizes utility by consuming 5 energy drinks per day.
Marginal Utility
The increased gratification or utility derived from the consumption of an extra unit of a good or service.
Energy Drink
A type of beverage containing stimulant compounds, usually caffeine, that is marketed as providing mental and physical stimulation.
Utility
Describes the complete fulfillment derived from the use of a product or service.
- Comprehend the principle of marginal utility and its impact on consumer choices.
Verified Answer
GB
Learning Objectives
- Comprehend the principle of marginal utility and its impact on consumer choices.