Economics Year 1 - pre mock

Economics Year 1 - pre mock

by Sabrina Schmidt

​Marginal utility

• ​Marginal utility is the added satisfaction a consumer gets from having one more unit of a good or service.

• The concept of marginal utility is used by economists to determine how much of an item consumers are willing to purchase.

• Marginal utility can be positive, zero, or negative

>> Positive marginal utility occurs when the consumption of an additional item increases the total utility. Negative marginal utility occurs when the consumption of one more unit decreases the overall utility.

Multiple Select

Marginal utility is

• the additional satisfaction

• the extra satisfaction when consuming a product

• the decrease in satisfaction when consuming

• the increase in satisfaction when consuming less

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