FIGURE 6- 1
-Refer to Figure 6- 1. The consumer's total utility is
A) constant.
B) increasing at a decreasing rate..
C) decreasing at an increasing rate
D) decreasing at a decreasing rate.
E) increasing at an increasing rate.

Question

FIGURE 6- 1
-Refer to Figure 6- 1. The consumer's total utility is
A) constant. 
B) increasing at a decreasing rate.. 
C) decreasing at an increasing rate 
D) decreasing at a decreasing rate. 
E) increasing at an increasing rate.

Quizplus · Accepted Answer

Total utility typically increases at a decreasing rate due to the law of diminishing marginal utility, which states that as a consumer consumes more of a good, the additional satisfaction from each additional unit decreases.

FIGURE 6- 1 -Refer to Figure 6- 1. the Consumer's Total Utility Is