Consumer Equilibrium Utility approach

When Marginal Utility is zero what happens to Total Utility?

• Became Zero
• Became Maximum
• Became Minimum
• None of these

Want satisfying power of a commodity is called

• Utility
• Demand
• Consumers equilibrium
• None of these

The approach where utility can be measured in terms of rupee is known as

• Ordinal utility approach

• Cardinal utility approach

Which of the shaded area in the diagrams below represents total utility?

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Which of the following can be referred to as 'point of satiety'?

• MU is negative

• TU is rising

• MU is zero

• TU is falling

A consumer consumes only two goods X and Y whose prices are Rs 3 and Rs 4 respectively. If the consumer chooses a combination of the two goods with MU of X equal to 4 and that of Y equal of 3, then the consumer will______

• Buy more units of both X and Y

• Buy more units of Y and less of X

• Buy more units of X and less of Y

• Buy less units of the both, X and Y

According to the law of diminishing marginal utility, which of the following is true?

• Consuming more of a good will always make a consumer worse off

• Total satisfaction from a good increases at an increasing rate as more of the good is consumed

• The total satisfaction from consuming more of a good always decreases as consumption increases

• The satisfaction of consuming additional units of a good will decrease as consumption of the good increases

• When marginal utility decreases, total utility will also decrease