Micro_discussion_4.pdf - Name ID Section ECO 2201...

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Name______________________________________________ ID______________ Section________ ECO 2201 MICROECONOMICS DISCUSSION ON LESSON 4: CONSUMER DECISION 1. “As long as the principle of diminishing marginal utility is operating, any increased consumption of a good lowers marginal utility and, therefore, total utility.” Do you agree with statement? Explain with an example. 2. Identify whether the following statements are true or false. If false explain why. a. Utility is the satisfaction or enjoyment that a person obtains from consuming a good that can be measured precisely by psychological tests. b. If the law of diminishing marginal utility applies, then a graph of total utility will show a positive slope that increases as the number of units consumed increases. 3. Explain the logic behind the marginal-utility-to-price ratio equalization principle.
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Name______________________________________________ ID______________ Section________
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