B.Total utility is a term that accounts for overall use or satisfaction of a product. It measures the sum of all uses.
Marginal utility only accounts for the additional satisfaction derived from consuming one more unit. While one
measures the overall value (total utility), the other measures the values of added consumption (marginal utility).
B.Every choice creates a cost and a benefit. When making a decision, the benefit is the chosen solution while
the cost becomes the forgone solution.
C.An inverse relationship exists between prices and quantity demanded. As prices rise, consumers reduce their
quantity demanded. As prices fall, consumers increase their quantity demanded. Prices can act as both a positive
and negative incentive to consumers.
A.An external preference is not a factor that helps consumers make choices.
C.Surpluses are a rise in the inventories of goods. When this occurs, quantity rises and prices fall. Prices act as
an incentive for consumers.
