Utility Analysis
Economics ⇒ Consumer and Producer Behaviour
Utility Analysis starts at 11 and continues till grade 12.
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See sample questions for grade 12
A consumer consumes 5 units of a good. The total utility from 4 units is 40 utils and from 5 units is 45 utils. What is the marginal utility of the 5th unit?
A consumer gets 20 utils from the first unit of a good, 15 from the second, and 10 from the third. What is the marginal utility of the third unit?
A consumer’s marginal utility schedule for a good is as follows: 1st unit: 12 utils, 2nd unit: 10 utils, 3rd unit: 7 utils, 4th unit: 3 utils. Calculate the total utility after consuming 4 units.
A consumer’s total utility from consuming 3 chocolates is 30 utils, and from 4 chocolates is 32 utils. What is the marginal utility of the 4th chocolate?
Define utility in the context of economics.
Describe the importance of the Law of Diminishing Marginal Utility in consumer behaviour analysis.
Describe the relationship between total utility and marginal utility using a table or example.
Explain the concept of equi-marginal utility.
Explain the concept of initial utility with an example.
Explain the concept of negative utility with an example.
Explain the difference between total utility and marginal utility.
Explain why the Law of Diminishing Marginal Utility does not apply to money in the same way as to other goods.
Explain why utility is considered a subjective concept.
If a consumer’s marginal utility from consuming a good is negative, what should the consumer do to maximise satisfaction?
If a consumer’s total utility from 2 units is 25 utils and from 3 units is 33 utils, what is the marginal utility of the 3rd unit?
If the marginal utility of the 4th apple is 0, what can you say about the total utility at this point?
If the marginal utility of the 6th unit is -3 utils, what happens to total utility when the 6th unit is consumed?
If total utility increases at a decreasing rate as more units are consumed, what happens to marginal utility?
State any two assumptions of the Law of Diminishing Marginal Utility.
State the Law of Diminishing Marginal Utility.
