Which of the following statements is TRUE As more of a good

Which of the following statements is TRUE?

As more of a good is consumed, its total utility increases, even if the good is subject to diminishing marginal utility.

No two people have identical utility functions, just as no two people have identical fingerprints.

As more of a good is consumed, its total utility increases, unless the good is subject to diminishing marginal utility.

Both A and C above.

Water is cheap and diamonds are expensive because water has a ________, and diamonds have a ________.

low total utility; high total utility

low marginal utility and a low total utility; high marginal utility and a high total utility

low marginal utility; high marginal utility

high marginal utility; low marginal utility

Which of the following statements is TRUE?

Marginal utility theory makes no prediction about a consumer\'s responses to hikes in the prices of the goods and services he or she consumes.

It is possible to derive the law of demand—that a higher price decreases the quantity demanded—using marginal utility theory.

Marginal utility theory predicts that an increase in a consumer\'s income increases consumption of all goods.

Marginal utility theory predicts that all goods are normal goods and that all goods are substitutes for each other.

		As more of a good is consumed, its total utility increases, even if the good is subject to diminishing marginal utility.
		No two people have identical utility functions, just as no two people have identical fingerprints.
		As more of a good is consumed, its total utility increases, unless the good is subject to diminishing marginal utility.
		Both A and C above.

Solution

Q1. Answer is NO two people have identical utility function just as no two people have identical fingerprints. Q2. Answer is low marginal utility; high marginal utility. Q3. Answer is It is possible to derive the law of demand-that a higher price decrease the quantity demanded-using marginal utility analysis.