7. An indifference map implies that:
A. money income is constant, but the prices of the two products vary directly with the quantities purchased.
B. the two products under consideration are perfectly substitutable for one another.
C. a consumer is better off to be at some point high on a given curve as opposed to a point low on the same curve.
D. curves farther from the origin yield higher levels of total utility.
1. The law of diminishing marginal utility states that:
A. total utility is maximized when consumers obtain the same amount of utility per unit of each product consumed.
B. beyond some point additional units of a product will yield less and less extra satisfaction to a consumer.
C. price must be lowered to induce firms to supply more of a product.
D. it will take larger and larger amounts of resources beyond some point to produce successive units of a product.