Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P x . Assume that P = $8, I = 200, and P x = $10.
-_____ is the change in total utility that occurs because one more unit of a good is consumed or acquired.
A)Total utility
B)Marginal utility
C)Disutility
D)Diminishing marginal utility
E)Expected utility

Question

Quizplus · Accepted Answer

Marginal utility is the change in total utility that occurs because one more unit of a good is consumed or acquired. The other options are not relevant to the given question.

Scenario 5.1 The Demand for Noodles Is Given by the Following Equation