Asked by Julia Gonzalez on Jul 06, 2024
Verified
Given the information in the table below,find the marginal utility and the total utility.
Price Quantity Demanded Marginal Utility Total Utility $701$602$503$404$305\begin{array} { | c | c | c | c | } \hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \\\hline \$ 70 & 1 & & \\\hline \$ 60 & 2 & & \\\hline \$ 50 & 3 & & \\\hline \$ 40 & 4 & & \\\hline \$ 30 & 5 & & \\\hline\end{array} Price $70$60$50$40$30 Quantity Demanded 12345 Marginal Utility Total Utility
Marginal Utility
The supplementary joy or advantage an individual experiences when acquiring an extra unit of a good or service.
Total Utility
The total satisfaction or benefit that a consumer derives from consuming a certain quantity of a good or service.
- Gain an understanding of the notion of marginal utility and the way it influences consumer preferences.
- Determine the aggregate utility from the supplied data.
- Calculate marginal utility resulting from variations in total utility.
Verified Answer
MA
magedahmed alhalmyJul 12, 2024
Final Answer :
Price Quantity Demanded Marginal Utility Total Utility $701$70$70$602$60$130$503$50$180$404$40$220$305$30$250\begin{array} { | c | c | c | c | } \hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \\\hline \$ 70 & 1 & \$ 70 & \$ 70 \\\hline \$ 60 & 2 & \$ 60 & \$ 130 \\\hline \$ 50 & 3 & \$ 50 & \$ 180 \\\hline \$ 40 & 4 & \$ 40 & \$ 220 \\\hline \$ 30 & 5 & \$ 30 & \$ 250 \\\hline\end{array} Price $70$60$50$40$30 Quantity Demanded 12345 Marginal Utility $70$60$50$40$30 Total Utility $70$130$180$220$250
Learning Objectives
- Gain an understanding of the notion of marginal utility and the way it influences consumer preferences.
- Determine the aggregate utility from the supplied data.
- Calculate marginal utility resulting from variations in total utility.