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

-Refer to Figure 9-1. Which distance along the vertical axis represents the marginal utility of an increase in wealth from $600 to $800?
A) the distance between the origin and point B
B) the distance between the origin and point C
C) the distance between point A and point C
D) the distance between point B and point C

Question

Figure 9-1. The figure shows a utility function.
 
-Refer to Figure 9-1. Which distance along the vertical axis represents the marginal utility of an increase in wealth from $600 to $800?
A) the distance between the origin and point B 
B) the distance between the origin and point C 
C) the distance between point A and point C 
D) the distance between point B and point C

Quizplus · Accepted Answer

The marginal utility of an increase in wealth from $600 to $800 is represented by the change in utility, which is the vertical distance between the utility at $600 (point B) and the utility at $800 (point C).

Figure 9-1. the Figure Shows a Utility Function