In the graph, the TU curve falls after 6 units because 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, the TU curve falls after 6…

In the graph, the TU curve falls after 6 units because

Question 12

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In the graph, the TU curve falls after 6 units because

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 marginal utility of the 7th unit is zeroCorrect answerYour answerthe price of ice cream has risenCorrect answerYour answerthe marginal utility of the 7th unit is negativeCorrect answerYour answerthe consumer's income has fallenCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

TU falls from 30 to 28, so MU₇ = 28 − 30 = −2 utils.
Whenever MU is negative, TU declines.

Concept: Falling TU and negative MU
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, the TU curve falls after 6 units because

Question 12

Explanation