The law of diminishing marginal utility explains why O demand curves slope downward. addicts can never get enough. people will only consume their favorite goods and not try new things. supply curves slope upward. QUESTION 2 Which situation is consistent with the law of diminishing marginal utility? The more pizza Joe eats, the less he enjoys an additional slice. The more pizza Joe eats, the more he enjoys an additional slice. Joe's marginal utility from eating pizza becomes positive after eating three slices. Joe's marginal utility from eating pizza reaches a maximum when total utility is zero. QUESTION 3 Why do people tend to eat more at all-you-can-eat buffet restaurants than at restaurants where each item is purchased separately? O MU/P is consistently greater at all-you-can-eat restaurants. Food at all-you-can-eat restaurants tends to have fewer calories, so consumers feel the need to consume a greater volume of food. People who eat at all-you-can-eat restaurants do not experience diminishing marginal utility. Once the all-you-can-eat meal is purchased, consumers view additional trips back to the buffet as having a price of zero. QUESTION 4 Total utility is best defined as the additional satisfaction received from consuming one more unit of a product. total satisfaction received from consuming a given amount of a product. maximum amount of satisfaction from consuming a product. change in marginal utility multiplied by the price of a product. QUESTION 5 The income effect of a price increase for a normal good causes an increase in the consumption of the good. O True False