FIGURE 6- 1
-Refer to Figure 6- 1. This figure illustrates the law of
A) diminishing marginal utility.
B) diminishing total utility.
C) maximizing utility.
D) increasing total utility.
E) increasing marginal utility.

Question

FIGURE 6- 1
-Refer to Figure 6- 1. This figure illustrates the law of
A) diminishing marginal utility. 
B) diminishing total utility. 
C) maximizing utility. 
D) increasing total utility. 
E) increasing marginal utility.

Quizplus · Accepted Answer

The figure shows a decreasing slope for the total utility curve, which demonstrates the law of diminishing marginal utility. As more units of a good are consumed, the additional satisfaction (marginal utility) from each unit decreases, leading to a diminishing total utility. Therefore, choice A (diminishing marginal utility) is the correct answer.

FIGURE 6- 1 -Refer to Figure 6- 1. This Figure Illustrates the Law