CHAPTER 7 Consumer Behavior

Complete the following table and answer the questions below:

Units consumed	Total utility	Marginal utility
0	0	_____
1	10	10
2	_____	8
3	25	_____
4	30	_____
5	_____	3
6	34	_____

A At which rate is Total Utility increasing:a constant rate, a decreasing rate, or an increasing rate

How do you know?

B "A rational consumer will purchase only 1 unit of the product represented by these data, since that amount maximizes marginal utility." Do you agree?Explain why or why not.

C "It is possible that a rational consumer will not purchase any units of the product represented by these data." Do you agree? Explain why or why not.