Table 1 Units of quantity consumed Total utility Marginal utility 0 - - 1 10 10 2 15 5 3 17 2 4 18 1 5 18 0 The table above illustrates the law of?

Correct Answer is : diminishing marginal utility

diminishing marginal productivity

Table 1 Units of quantity consumed Total utility Marginal utility 0 - - 1 10 10 2 15 5 3 17 2 4 18 1 5 18 0 The table above illustrates the law of?

Correct Answer is : diminishing marginal utility

Test Index

WAEC Economics 2019 Paper

Question : 14

Total: 50

Table 1
Units of quantity consumed	Total utility	Marginal utility
0	-	-
1	10	10
2	15	5
3	17	2
4	18	1
5	18	0

The table above illustrates the law of?

diminishing returns
diminishing marginal productivity
diminishing marginal utility
variable proportion

Validate

Solution:

Concept:

The law of diminishing marginal utility states that as a person consumes more units of a commodity, the extra satisfaction from each additional unit keeps falling.

Explanation:

From the table, as quantity consumed rises from

1

unit to

5

units, total utility first increases:

10 \to 15 \to 17 \to 18 \to 18

However, marginal utility falls steadily after the first unit.

It changes as follows:

10 \to 5 \to 2 \to 1 \to 0

This clearly shows that each additional unit gives less and less extra satisfaction.

Total utility reaches its maximum at

18

and then becomes constant when marginal utility becomes

0

Because marginal utility declines continuously with increased consumption, the table illustrates the law of diminishing marginal utility.

Answer:

Option C. diminishing marginal utility.

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