Figure 14-1. The figure shows a utility function.
-Refer to Figure 14-1. Which distance along the vertical axis represents the marginal utility of an increase in wealth from $600 to $800?
A)the distance between the origin and point B
B)the distance between the origin and point C
C)the distance between point A and point C
D)the distance between point B and point C

Question

Figure 14-1. The figure shows a utility function. 
-Refer to Figure 14-1. Which distance along the vertical axis represents the marginal utility of an increase in wealth from $600 to $800?
A)the distance between the origin and point B 
B)the distance between the origin and point C 
C)the distance between point A and point C 
D)the distance between point B and point C

Quizplus · Accepted Answer

Marginal utility of an increase in wealth from $600 to $800 is represented by the change in utility from point B to point C. Therefore, the distance between point B and point C represents the marginal utility of an increase in wealth from $600 to $800.