Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 6 - Consumer Behavior - Questions: 1a

Answer

Total utility is increasing at a decreasing rate. This is due to the marginal utility decreasing as the units consumed increase.

Work Step by Step

Total utility is the amount of usefulness a product, or multiple products provide to a consumer (buyer). Marginal utility is the amount of additional usefulness an extra unit of product provides to a consumer. The table provided in the question states that as extra units of product are being consumed at a linear rate, the total utility increases, but the marginal utility decreases
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