Use the following to answer questions:
-(Table: Natasha's Total Utility) Look at the table Natasha's Total Utility. Natasha's marginal utility _____ as her income increases. The marginal utility of income between $30,000 and $32,500 is _____ utils per dollar, while it is _____ utils per dollar between $47,500 and $50,000.
A) increases; 0.48; 0.64
B) increases; 0.12; 0.36
C) diminishes; 0.50; 0.25
D) diminishes; 0.32; 0.04

Question

Use the following to answer questions: 
-(Table: Natasha's Total Utility) Look at the table Natasha's Total Utility. Natasha's marginal utility _____ as her income increases. The marginal utility of income between $30,000 and $32,500 is _____ utils per dollar, while it is _____ utils per dollar between $47,500 and $50,000.
A) increases; 0.48; 0.64 
B) increases; 0.12; 0.36 
C) diminishes; 0.50; 0.25 
D) diminishes; 0.32; 0.04

Quizplus · Accepted Answer

As Natasha's income increases, her marginal utility diminishes. The marginal utility of income between $30,000 and $32,500 is 0.32 utils per dollar, while it is 0.04 utils per dollar between $47,500 and $50,000.

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