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Scenario 5.1 The Demand for Noodles Is Given by the Following Equation

Question 1

Multiple Choice

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2Px. Assume that P = $8, I = 200, and Px = $10.
-As a consumer eats additional pieces of pizza, total utility will _____.


A) always keep increasing
B) always keep decreasing
C) keep increasing until dissatisfaction sets in
D) keep decreasing until dissatisfaction sets in
E) initially keep decreasing until it becomes zero and then increase

Correct Answer:

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