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10. The table below contains information about the total utility you gain from coffee you buy from a coffee shop. Cups of Coffee Total Utility

10. The table below contains information about the total utility you gain from coffee you buy from a coffee shop.

Cups of Coffee

Total Utility in $ amount

1

1.5

2

2.7

3

3.6

4

3.6

5

2

  1. Does this example exhibit the diminishing marginal utility principle? Explain.
  2. How many cups of coffee will you buy if the price of each cup is $1? Explain.
  3. At what price, would you buy three cups of coffee? Explain.

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