I have a econ homework due, but I'm stuck on these 2 questions. Can someone explain them?
1.
Point A (2,6)
Point B (4,4)
When moving from point a to point b on the graph:
a) The dollar value of the marginal utility of each additional cookie consumed is increasing
b) The demand for cookies is increasing
c) The dollar value of the total utility derived from the consumption of cookies is decreasing
d) The dollar value of the marginal utility of each additional cookie consumed is decreasing
e) The price of cookies is increasing
Heres a link to a picture of the graph
http://i1042.photobucket.com/albums/b423/anamaria234/qwerty.jpg
2. In order to derive a demand curve for cheese, we would change
a. income and hold other things constant
b. the price of other goods and hold everything else constant
c. tastes and hold other things constant
d. the price of cheese and hold other things constant
e. the price of all goods, including cheese and hold other things constant
1.
Point A (2,6)
Point B (4,4)
When moving from point a to point b on the graph:
a) The dollar value of the marginal utility of each additional cookie consumed is increasing
b) The demand for cookies is increasing
c) The dollar value of the total utility derived from the consumption of cookies is decreasing
d) The dollar value of the marginal utility of each additional cookie consumed is decreasing
e) The price of cookies is increasing
Heres a link to a picture of the graph
http://i1042.photobucket.com/albums/b423/anamaria234/qwerty.jpg
2. In order to derive a demand curve for cheese, we would change
a. income and hold other things constant
b. the price of other goods and hold everything else constant
c. tastes and hold other things constant
d. the price of cheese and hold other things constant
e. the price of all goods, including cheese and hold other things constant