Figure 19-1.The figure shows a utility function.
-Refer to Figure 19-1.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 19-1.The figure shows a utility function. 
-Refer to Figure 19-1.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

The marginal utility of an increase in wealth from $600 to $800 is the additional satisfaction gained from that increase in wealth. This corresponds to the vertical distance between points B and C on the graph, which represents the change in utility (vertical axis) for the change in wealth. Therefore, the correct answer is D, the distance between point B and point C.

Figure 19-1.The Figure Shows a Utility Function