In the graph, between 5 and 6 units the TU curve is flat. This shows that A total utility curve for ice cream: TU is 10 utils at 1 unit, then 18, 24, 28, 30 at 5 units, stays at 30 at 6 units and falls to 28 at 7 units. Point M marks 5 units, 30 utils.

In the graph, between 5 and 6 units the TU…

In the graph, between 5 and 6 units the TU curve is flat.

Question 11

MediumOriginal question

In the graph, between 5 and 6 units the TU curve is flat. This shows that

A total utility curve for ice cream: TU is 10 utils at 1 unit, then 18, 24, 28, 30 at 5 units, stays at 30 at 6 units and falls to 28 at 7 units. Point M marks 5 units, 30 utils.

the 6th unit adds the most utilityCorrect answerYour answerMU is negativeCorrect answerYour answerthe consumer stops liking ice cream at onceCorrect answerYour answerthe 6th unit adds no utility: MU is zeroCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

TU stays at 30 utils from 5 to 6 units, so the 6th unit adds 30 − 30 = 0.
A flat TU curve means MU = 0: the point of saturation.

Concept: Reading a flat TU curve
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsTotal and marginal utility

Practise this chapter →

Ten questions from Utility & Consumer's Equilibrium, at your own pace.

Practise this chapter →

Ten questions from Utility & Consumer's Equilibrium, at your own pace.

In the graph, between 5 and 6 units the TU curve is flat.

Question 11

Explanation