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1.2 Individual economic decision making (A-level only)

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Question 3

A consumer's satisfaction from consuming different quantities of artisanal gelato during a single visit to a parlour is shown in the table and plotted in the graph below.

Total Utility from Gelato Consumption

Total Utility Graph

Quantity of gelato scoops (QQQ)Total Utility (TUTUTU, relative units)
00.0
112.0
226.0
336.0
442.0
542.0
634.0

Based on this information, which one of the following statements is correct?

A rational utility-maximising consumer will always choose to consume exactly 555 scoops of gelato.

Marginal utility is maximised with the consumption of the 555th scoop of gelato.

Diminishing marginal utility begins with the consumption of the 333rd scoop of gelato.

The marginal utility of the 444th scoop of gelato is greater than the marginal utility of the 111st scoop.

1.2 Individual economic decision making (A-level only) Questions

  1. A Level
  2. /Economics
  3. /1.2 Individual economic decision making (A-level only)