Exhibit 5-1
-Refer to Exhibit 5-1. As the individual consumes each additional can of soda, total utility
A)increases by 9 units of utility.
B)increases at a decreasing rate.
C)stays constant.
D)increases at an increasing rate.
E)decreases by 9 units of utility.

Question

Exhibit 5-1 
-Refer to Exhibit 5-1. As the individual consumes each additional can of soda, total utility
A)increases by 9 units of utility. 
B)increases at a decreasing rate. 
C)stays constant. 
D)increases at an increasing rate. 
E)decreases by 9 units of utility.

Quizplus · Accepted Answer

Total utility increases as more of a good is consumed, but at a decreasing rate, reflecting the law of diminishing marginal utility. This means each additional unit of the good consumed adds less to total utility than the previous unit.

Exhibit 5-1 -Refer to Exhibit 5-1. as the Individual Consumes Each Additional