The following question are based on the following graph:

-As consumption is increased from 5 to 7 units,marginal utility is
A) rising.
B) falling.
C) constant.
D) zero.
E) negative.

Question

The following question are based on the following graph:
 
-As consumption is increased from 5 to 7 units,marginal utility is
A) rising. 
B) falling. 
C) constant. 
D) zero. 
E) negative.

Quizplus · Accepted Answer

As consumption increases from 5 to 6 units, marginal utility decreases from 18 to 16, and then from 16 to 14 as consumption increases from 6 to 7 units. This indicates that marginal utility is falling as consumption increases from 5 to 7 units.

The Following Question Are Based on the Following Graph