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Marginal utility a. is the combination of goods and services that maximizes utility for a given...

Marginal utility

a.

is the combination of goods and services that maximizes utility for a given income.
b.

occurs when there is a change in purchasing power as a result of a change in the price of a good.
c.

occurs when a consumer buys more of a good as a result of a relative price change.
d.

is the additional satisfaction derived from consuming one more unit of a good or service.
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Answer #1

Option

d. is the additional satisfaction derived from consuming one more unit of a good or service.

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MU is the additional satisfaction derived from consuming one more unit of a good or service.

Optimum consumption level is the combination of goods and services that maximizes utility for a given income.

Income effect occurs when there is a change in purchasing power as a result of a change in the price of a good.

substitution effect occurs when a consumer buys more of a good as a result of a relative price change

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