The marginal utility curve for units 6 through 8 of good Z lies below the horizontal axis. What does this imply must be true about the total utility curve for units 6 through 8 of good Z?
A)That portion of good Z's total utility curve must be upward sloping.
B)That portion of good Z's total utility curve must be downward sloping.
C)That portion of good Z's total utility curve must be horizontal.
D)That portion of good Z's total utility curve must also lie below the horizontal axis.

Question

Quizplus · Accepted Answer

When the marginal utility is negative (lying below the horizontal axis), it implies that each additional unit of the good decreases the total utility. Therefore, the total utility curve must be downward sloping during this period, as total utility decreases with each additional unit consumed.

The Marginal Utility Curve for Units 6 Through 8 of Good