Multiple Choice
The diamond-water paradox is an example that shows that
A) necessities like water should have a higher price.
B) marginal utility rather than total utility determines what people are willing to pay for a good.
C) there are exceptions to the law of diminishing marginal utility.
D) marginal utility can initially increase and then decrease.
Correct Answer:

Verified
Correct Answer:
Verified
Q164: The consumer optimum is found by using<br>A)
Q165: Diminishing marginal utility means that as more
Q166: A consumer will achieve the highest level
Q167: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -In the above
Q168: When the price of DVDs falls relative
Q170: If total utility is increasing, then marginal
Q171: A student enters a McDonald's fast-food restaurant.
Q172: The slope of the budget line is<br>A)
Q173: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -In the above
Q174: Increases in total utility from the consumption