Multiple Choice
Which statement about the relationship of advertising to sales and profits is most likely true?
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5. Consumer and Producer Surplus; Price Ceilings and Floors
Consumer Surplus and Willingness to Pay
Multiple Choice
In microeconomics, the additional satisfaction or benefit received from consuming one more unit of a good or service is known as:
A
Consumer surplus
B
Marginal utility
C
Total utility
D
Willingness to pay
Verified step by step guidance1
Understand the concept being asked: The problem is about the additional satisfaction or benefit from consuming one more unit of a good or service.
Recall the definitions of the options: Consumer surplus is the difference between what consumers are willing to pay and what they actually pay; Total utility is the overall satisfaction from all units consumed; Willingness to pay is the maximum amount a consumer is ready to pay for a good.
Identify the term that specifically refers to the satisfaction gained from one additional unit consumed, which is known as Marginal utility.
Recognize that Marginal utility measures the change in total utility when consumption increases by one unit.
Conclude that the correct term for the additional satisfaction from one more unit is Marginal utility.
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