Refer to Figure 6.10. Kyle would increase his consumption of turkey sandwiches from 7 to 9 per week if their price fell from $6 to $4. This illustrates the idea of

A) consumer surplus.
B) the law of diminishing marginal utility.
C) cross-price elasticity of demand.
D) technical efficiency.

Question

Shauna Grillo · Accepted Answer

Final Answer : B, Explanation :  Kyle's increased consumption of turkey sandwiches as their price decreases illustrates the law of diminishing marginal utility, which suggests that as a person consumes more of a good, the additional satisfaction (marginal utility) gained from consuming an additional unit of that good decreases. This concept explains why consumers may buy more of a product when its price decreases.

Refer to Figure 6.10. Kyle would increase his consumption of turkey sandwiches from 7 to 9 per week if their price fell from $6 to $4. This illustrates the idea of

A) consumer surplus.
B) the law of diminishing marginal utility.
C) cross-price elasticity of demand.
D) technical efficiency.

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Figure 6.10. Kyle would increase his consumption of turkey sandwiches from 7 to 9 per week if their price fell from $6 to $4. This illustrates the idea ofA) consumer surplus.B) the law of diminishing marginal utility.C) cross-price elasticity of demand.D) technical efficiency.

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Figure 6.10. Kyle would increase his consumption of turkey sandwiches from 7 to 9 per week if their price fell from $6 to $4. This illustrates the idea of

A) consumer surplus.
B) the law of diminishing marginal utility.
C) cross-price elasticity of demand.
D) technical efficiency.