Figure 9-1. The figure shows a utility function.

-Refer to Figure 9-1. What is measured along the vertical axis?
A) risk aversion
B) marginal utility
C) utility
D) the number of units of a good that can be purchased

Question

Figure 9-1. The figure shows a utility function.
 
-Refer to Figure 9-1. What is measured along the vertical axis?
A) risk aversion 
B) marginal utility 
C) utility 
D) the number of units of a good that can be purchased

Quizplus · Accepted Answer

The vertical axis measures utility, which represents the satisfaction or happiness a consumer gets from consuming a certain amount of a good. Therefore, the best choice would be to choose the quantity of the good that maximizes utility.

Figure 9-1. the Figure Shows a Utility Function