Figure 4-1

Figure 4-1 shows Arnold's demand curve for burritos.
-Refer to Figure 4-1.Arnold's marginal benefit from consuming the third burrito is
A)$1.25.
B)$1.50.
C)$2.50.
D)$6.00.

Question

Figure 4-1
  
Figure 4-1 shows Arnold's demand curve for burritos.
-Refer to Figure 4-1.Arnold's marginal benefit from consuming the third burrito is
A)$1.25. 
B)$1.50. 
C)$2.50. 
D)$6.00.

Quizplus · Accepted Answer

Arnold's marginal benefit from consuming the third burrito is equal to the change in total benefit from consuming three burritos (TB3) minus the total benefit from consuming two burritos (TB2). This is equal to $7.50 - $6.00 = $1.50. 
The best choice for Arnold depends on the price of burritos. If the price is less than or equal to $1.50, Arnold will consume three burritos. If the price is greater than $1.50 but less than or equal to $2.50, Arnold will consume two burritos. If the price is greater than $2.50, Arnold will consume one burrito.

Figure 4-1 Figure 4-1 Shows Arnold's Demand Curve for Burritos