Quiz. Chap possible Utility is a type of function that occurs in economics. When a consumer receives x units of a certain product, a certain amount of pleasure, or utility U, is derived. The graph represents a typical utility function. 200 JU (4,185) (3,159) a) Find the average rate of change of U as x changes from 0 to 1; from 1 to 2, from 2 to 3; from 3 to 4 150- b) Why do the average rates of change decrease as x increases? (2, 126) Utility (pleasure units) 100- (1,79) 50- 0- Number of units of product b) Why do the average rates of change decrease as x increases? O A. The average rate of change is the ratio of the change in utility, U, divided by the change in number of units of product, x. While U is increasing as x increases, the change in U is decreasing Therefore, the average rates of change decrease as x increases. O B. The average rate of change is the ratio of the change in utility, U, divided by the change in number of units of product, x. While U is decreasing as x increases, the change in U is increasing. Therefore, the average rates of change decrease as x increases. O C. The average rate of change is the ratio of the number of units of product, x, divided by the change in utility, U. While U is decreasing as x increases, the change in U is Next