Economics 9708 · AS & A Level · Utility and rational consumer behaviour

Utility and rational consumer behaviour — practice question

The diagram illustrates the marginal utility (MU) an individual gains from a good at various levels of consumption. The utility gained from the last $ he spends on each good is 4 units. If the marginal utility of money is assumed to remain constant, what quantity will he buy when the price of the good is $10?

  • A4 kilos
  • B5 kilos
  • C6 kilos
  • D7 kilos

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