Question

Consider Figure 20-1. If this individual were to contemplate consuming a seventh digital app and experience a total utility of 15 utils as a consequence, what would be the resulting marginal utility? Would the points on the total utility and marginal utility graphs in panels (a) and (b) lie higher or lower to the right of the current endpoints of those graphs?

Short answer

the points on the total utility and marginal utility graphs in panels (a) and (b) lie lower to the right of the current endpoints of those graphs and it will be$-3units.$

Step-by-step solution

Given Information

The individual was to contemplate consuming a seventh digital app and experience a total utility of 15 utils.

Explanation

We know,

As we move from $6$to $7$units, The change in no. of units is

$∆T=15-18=-3$

$\text{Marginal Utility}=\frac{\text{Change in No. of Units Consumed}\left(\mathrm{\Delta }TU\right)}{\text{Change in Total Utility}\left(\mathrm{\Delta }Q\right)}$

$\Rightarrow \frac{-3}{1}=-3units$

Hence, the points on the total utility and marginal utility graphs in panels (a) and (b) lie lower to the right of the current endpoints of those graphs and it will be$-3units$.