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CAIE A-Level Economics A2 7.1.2 Diminishing Marginal Utility Questions

Practise explaining diminishing marginal utility from successive consumption, demand curves and total-utility graphs using CAIE Economics A2 questions and mark schemes.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Exam points

  • Explain diminishing marginal utility by relating falling extra satisfaction from successive units to the shape of demand and total-utility curves.

CAIE A-Level Economics A2 7.1.2 Diminishing Marginal Utility Questions question 1

[Maximum number: 1]

Economists normally assume that the marginal utility from consuming additional goods is positive and diminishing.

What is the effect on total satisfaction of consuming extra units of the good?

A

Total satisfaction falls at a decreasing rate.

B

Total satisfaction falls at an increasing rate.

C

Total satisfaction rises at a decreasing rate.

D

Total satisfaction rises at an increasing rate.

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