Question

• Describe the behavior of the marginal utilities of such products.
• Does this explain why many people choose not to smoke, but those who do usually consume ten or more cigarettes per day?

Answer 1

SOLUTION:-

1) Marginal Utilities:- In economics, utility word is described as the satisfaction level of a product. So the Marginal Utility can be described as change in the utility from an increase in the consumption of a product.

Behavior of Marginal Utilities:-Behavior of a consumer can be analysed by the marginal utility. According to microeconomics theory, a consumer buys goods as long as he gets marginal utility for each product exceeds its price.

Some commodities consumed by certain households can be psychologically or physically habit forming, so if a person consume them, the more strongly one desires additional quantities like smoke, wine, etc.

2) People who are addictive to some particular drugs, smoking or drinking, the marginal utility of that drug rises instead of falling with more consumption. It happens because they are addictive of the drugs or smoking and the get additional marginal utility of another smoke is higher.

So that's why many people choose not to smoke but those who do usually consume ten or more cigerattes per day.

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