Long description
A graph relating utility (on the vertical axis) to income (on the horizontal axis). There are two functions plotted: marginal utility and total utility. Marginal utility is a negatively sloped almost straight line that crosses the horizontal axis and becomes negative at some point. Total utility increases very rapidly at low levels of income, but at a decreasing rate. It eventually plateaus and starts decreasing. The point where total utility starts decreasing is the same as when marginal utility becomes negative. There are two points plotted on the marginal utility curve. The first point has a low level of income set as lower-income household but a high marginal utility rate ;abelled MU1. The second point has a high level of income set as higher-income household but a lower level of the marginal utility labelled as MUh.