a. What is the total utility of consuming 500 units of the
good? 600 units? 700 units?
b. How does the marginal utility of the 100th unit compare
to that for the 200th or 500th? How do you know?
c. How is the law of diminishing marginal utility
demonstrated in this diagram?
d. What is the marginal utility of consuming Good X when
total utility is at its maximum?
15. Sally consumes only two goods, shoes and “everything else.” For
five different shopping trips (each with different prices), the
prices and Sally’s marginal utilities are shown below.
Shoes Everything ElseMU Price ($) MU Price ($)