Refer to the information provided in Figure 6.10 below to answer the question(s) that follow. Figure 6.10
-Refer to Figure 6.10. Kyle would increase his consumption of turkey sandwiches from 5 to 7 per week if their price fell from $8 to $6. This illustrates the idea of
A) consumer surplus.
B) the law of diminishing marginal utility.
C) cross-price elasticity of demand.
D) technical efficiency.

Question

Refer to the information provided in Figure 6.10 below to answer the question(s) that follow.  Figure 6.10
-Refer to Figure 6.10. Kyle would increase his consumption of turkey sandwiches from 5 to 7 per week if their price fell from $8 to $6. This illustrates the idea of
A) consumer surplus. 
B) the law of diminishing marginal utility. 
C) cross-price elasticity of demand. 
D) technical efficiency.

Quizplus · Accepted Answer

The increase in consumption of turkey sandwiches as their price decreases from $8 to $6 demonstrates the law of diminishing marginal utility, which suggests that as a person consumes more of a good, the additional satisfaction (marginal utility) gained from consuming an additional unit of that good decreases. This principle explains why consumers may buy more of a product when its price decreases.

Refer to the Information Provided in Figure 6