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

Utility and rational consumer behaviour — practice question

The diagram illustrates the total utility of a good for an individual consumer. Marginal utility provides a guide to the price that a consumer is prepared to pay. What can be concluded about the price a consumer is prepared to pay per unit?

  • AThe price a consumer is willing to pay will be higher at Q0 than Q1.
  • BThe price a consumer is willing to pay will be higher at Q3 than Q0.
  • CThe price a consumer is willing to pay will be highest at Q2.
  • DThe price a consumer is willing to pay will be the same at Q1 and Q3.

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