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

-Refer to Figure 9-1. The utility function that is shown exhibits the property of diminishing
A) wealth.
B) utility.
C) marginal wealth.
D) marginal utility.

Question

Figure 9-1. The figure shows a utility function.
 
-Refer to Figure 9-1. The utility function that is shown exhibits the property of diminishing
A) wealth. 
B) utility. 
C) marginal wealth. 
D) marginal utility.

Quizplus · Accepted Answer

The utility function in Figure 9-1 likely shows diminishing marginal utility, meaning that as wealth increases, the additional utility gained from an additional unit of wealth decreases.

Figure 9-1. the Figure Shows a Utility Function