Asked by
Michael Gwandi
on Nov 04, 2024
Verified
For Matthew, the marginal utility of the 9th soda in a day is positive and the marginal utility of the 10th soda in a day is zero. This
A) implies that Matthew's demand curve for sodas per day will become upward sloping at 10 sodas 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 Matthew's demand curve will intersect the quantity axis at 10.
D) implies that Matthew maximizes utility by consuming 9 sodas per day.
Marginal Utility
The extra pleasure or benefit derived from consuming an additional unit of a product or service.
Demand Curve
A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.
- Familiarize yourself with the concept of diminishing marginal utility and the way it affects the decision-making process of consumers.
Verified Answer
JN
Learning Objectives
- Familiarize yourself with the concept of diminishing marginal utility and the way it affects the decision-making process of consumers.