Exhibit 6-18

-When moving from point a to point b in Exhibit 6-18:
A) The dollar value of the total utility derived from the consumption of cookies is decreasing
B) The dollar value of the marginal utility of each additional cookie consumed is decreasing
C) The dollar value of the marginal utility of each additional cookie consumed is increasing
D) The price of cookies is increasing
E) The demand for cookies is increasing

Question

Exhibit 6-18
 
-When moving from point a to point b in Exhibit 6-18:
A) The dollar value of the total utility derived from the consumption of cookies is decreasing 
B) The dollar value of the marginal utility of each additional cookie consumed is decreasing 
C) The dollar value of the marginal utility of each additional cookie consumed is increasing 
D) The price of cookies is increasing 
E) The demand for cookies is increasing

Quizplus · Accepted Answer

Moving from point a to point b represents an increase in the quantity consumed, which leads to a decrease in the marginal utility of each additional cookie consumed. This implies that the dollar value of the marginal utility of each additional cookie consumed is decreasing. A) is incorrect because the total utility cannot be determined based on this information alone. C) is incorrect because it suggests an increasing marginal utility, which is not the case here. D) and E) cannot be inferred from the information given.

Exhibit 6-18 -When Moving from Point a to Point B in Exhibit