Statement I: A person's marginal utility schedule can be derived from her demand schedule.
Statement II: If you purchased six dance lessons,the total utility you derived from the six lessons would be greater than the total utility you would have derived from five lessons.
A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question

Quizplus · Accepted Answer

Statement I is true as a person's demand schedule reflects the prices at which they are willing to buy a certain quantity of a good, which can be used to derive their marginal utility. 
Statement II is also true as the principle of diminishing marginal utility suggests that as one consumes more units of a good, the additional utility derived from each additional unit will decrease, but the total utility will still increase up to a certain point. Therefore, the sixth lesson will add some additional utility, although it may be less than the fifth lesson.

Statement I: a Person's Marginal Utility Schedule Can Be Derived