The Consumer Purchases More of a Good, her Marginal Utility falls while her Total Utility Rises.

Answer any 1 of the following 3 questions below in essay form. Your essays will be graded on the clarity of thought as expressed in your writing, degree to which you address yourself to the question, use of examples, as well as economic content. You may not copy directly from the textbook or any other written resource. This constitutes plagiarism which is a serious academic offense. (Refer to College Catalog for penalties regarding plagiarized work.) The College employs the software “Turnitin” so detecting plagiarism is quick and easy. The City of Philadelphia has imposed a tax on sugar sweetened soda. Who would pay all or most of that tax, producers or consumers? Explain in detail. Explain why it is that as the consumer purchases more of a good, her marginal utility falls while her total utility rises. What is price discrimination? Under what conditions are firms able to exercise price discrimination? Are consumers better off or worse off when they face a price discriminating monopolist rather than a simple monopolist? Why?

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