Figure 27-1.The figure shows a utility function.
-Refer to Figure 27-1.Which distance along the vertical axis represents the marginal utility of an increase in wealth from $600 to $800?
A)the distance between the origin and point B
B)the distance between the origin and point C
C)the distance between point A and point C
D)the distance between point B and point C

Question

Figure 27-1.The figure shows a utility function. 
-Refer to Figure 27-1.Which distance along the vertical axis represents the marginal utility of an increase in wealth from $600 to $800?
A)the distance between the origin and point B 
B)the distance between the origin and point C 
C)the distance between point A and point C 
D)the distance between point B and point C

Quizplus · Accepted Answer

The marginal utility of an increase in wealth from $600 to $800 can be obtained by calculating the change in utility between points B and C on the vertical axis. Therefore, the distance between point B and point C represents the marginal utility of an increase in wealth from $600 to $800.

Figure 27-1.The Figure Shows a Utility Function