the marginal utility of diamonds and water would both riseu

the marginal utility of diamonds and water would both riseu B. the marginal utility of both water and diamonds would both fa C. the marginal utility of diamonds would rise and the marginal utilia 6) If water became very scarce and diamonds became very plentiful would fall. D. the marginal utility of water would rise and the marginal util would fall surplus is 7.) Assume the demand curve is line AD. If price is OF, the consumer su bounded by letters A. OAFB. B. OACE C. FBD. D. ECD 8.) Assume the demand curve is line AD. If price is CB, then in the graph above, consumer surplus is bounded by A. CAD. B. CBED. C. BAE D. None of these choices are true. 9.) The water-diamond paradox is resolved once we realize that the marginal uilityof and the marginal utility of the lst the last gallon of water consumed is very diamond carat purchased is very A. low; low B. high; high C. high; low D. low, high

Solution

Ans

1 D is right. Greater the quantity small the marginal utility and vice versa

2 FBD. Area below demand curve but above price level

3 Bae. Same ligic

4 low, high is right answer