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The law of diminishing marginal utility implies that the demand for all goods wi

ID: 1180916 • Letter: T

Question

The law of diminishing marginal utility implies that
the demand for all goods will be elastic.
people become worse off as they consume more.
the demand for all goods will be inelastic.
people will consume a variety of goods rather than just one good.


Identify the choice that best completes the statement or answers the questions.

Identify the choice that best completes the statement or answers the questions.

The law of diminishing marginal utility implies thatAccording to the data in Table 4.6, what is the elasticity of demand between a price of $16 and a price of $12?

If you could pay for a product according to the marginal utility that you gain from additional consumption, then as you consume more of a product, the price you pay would
be deferred.
remain the same.
decline.
increase.

29 of 32

Identify the choice that best completes the statement or answers the questions.

Utility is a term economists use to refer to
affordability.
expectation.
satisfaction.
rationality.

30 of 32

Identify the choice that best completes the statement or answers the questions.

The law of diminishing marginal utility implies thatAccording to the data in Table 4.6, what is the elasticity of demand between a price of $16 and a price of $12?


0.58
1.85
0.85
5.82

Explanation / Answer

If you could pay for a product according to the marginal utility that you gain from additional consumption, then as you consume more of a product, the price you pay would
decline

Utility is a term economists use to refer to
satisfaction

no table provided

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