The table provides information about Nadia\'s total utility from reading article

Question

The table provides information about Nadia's total utility from reading articles about current events. Fill in the boxes in the table with Nadia's marginal utilities. Does Nadia experience diminishing marginal utility when reading articles? Explain your answer. If she experiences diminishing marginal utility, identify when this first occurs. Katherine's available income each week tor expenditures on lood and clothing is $40. The price ol each unit of food is $2 and the price of each unit of clothing is $10. Draw a graph of Katherine's budget line in which food is measured on the .v-axis and clothing is measured on the y-axis For each of the consumption bundles in the table that follows, identify w hcthcr the bundle is on Katherine's budget line, inside Katherine's budget line, or beyond Katherine's budge, line. Illustrate the bundles on your graph.

Explanation / Answer

7.a.

b. Yes, Nadia experiance Diminishing Marginal Utility. Because as Nadia read's more and more Articles the MU derived from each additional reading decreases as dipicted from the above table.DMU first occurs from 3rd reading.

No.of Articles read TU MU 1 100 - 2 300 200 (i.e. 300 - 100) 3 450 150 (i.e. 450 - 300) 4 550 100 5 625 75 6 680 55 7 720 40 8 740 20

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