FIGURE 6-1
-Refer to Figure 6-1.This figure illustrates the law of
A)maximizing utility.
B)increasing total utility.
C)diminishing total utility.
D)diminishing marginal utility.
E)increasing marginal utility.

Question

FIGURE 6-1
-Refer to Figure 6-1.This figure illustrates the law of
A)maximizing utility. 
B)increasing total utility. 
C)diminishing total utility. 
D)diminishing marginal utility. 
E)increasing marginal utility.

Quizplus · Accepted Answer

The figure illustrates the law of diminishing marginal utility, which states that as a consumer consumes more of a good or service, the additional satisfaction (or marginal utility) from each additional unit consumed will eventually decrease. This is represented by the downward sloping curve in the figure. Therefore, the best choice is D, which refers to the concept of diminishing marginal utility.

FIGURE 6-1 -Refer to Figure 6-1.This Figure Illustrates the Law of