Assume the demand curve is line Al). If price is OF, the consumer surplus is bou

Question

Assume the demand curve is line Al). If price is OF, the consumer surplus is bounded by letters OAFB. OACE. OAD. BCD. FBD. When marginal utility is, total utility is. positive: increasing zero; maximized negative: decreasing All of the choices are correct. Statement I: If you know a person's demand schedule for product J, you can derive her marginal utility schedule for product J. Statement II: If Bob buys 10 Sidney Sheldon novels, he is enjoying a consumer surplus. Statement I is true and statement II is false. Statement II is true and statement I is false. Both statements are true. Both statements are false.

Explanation / Answer

28)If price is OF,consumer surplus is FBD. It is the area below the demand curve and above the price line.So correct answer is E..

29)All are correct.

30)We can derive demand curve from marginal utility curve not vice versa.So statement one is false.

Statement two is true.If q is positive,than consumer surplus is positive.

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