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.

Question

Quizplus · Accepted Answer

Marginal utility measures the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service. If the marginal utility of the 9th soda is positive, it means Matthew gains additional satisfaction from consuming it. When the marginal utility of the 10th soda drops to zero, it indicates that consuming the 10th soda brings no additional satisfaction. This scenario suggests that at a zero price, Matthew would consume sodas up to the point where the marginal utility drops to zero, which is at the 10th soda. Therefore, his demand curve would intersect the quantity axis at 10 sodas per day, indicating the maximum number of sodas he would consume when the price is zero.

For Matthew, the Marginal Utility of the 9th Soda in a Day