Exam 6: Household Behavior and Consumer Choice

Refer to the information provided in Figure 6.4 below to answer the question(s) that follow. Figure 6.4 -Refer to Figure 6.4. Bill's budget constraint is AC. If the black bean price decreases, Bill's budget constraint will

Ellen is spending her entire income on goods X and Y. Her marginal utility from the last units of X and Y that she consumes is 25. Ellen's utility is only maximized if

Refer to the information provided in Figure 6.10 below to answer the question(s) that follow. Figure 6.10 -Refer to Figure 6.10. The current price of a turkey sandwich is $6. If Kyle is currently buying nine turkey sandwiches a week, he ________ maximizing utility because the marginal utility ________ than its price.

Refer to the information provided in Figure 6.8 below to answer the question(s) that follow. Figure 6.8 -Refer to Figure 6.8. The total utility of four movies is ________ and the fourth movie's marginal utility is ________.

Refer to the information provided in Figure 6.3 below to answer the question(s) that follow. Figure 6.3 -Refer to Figure 6.3. Molly's budget constraint is AC. It would swivel to AD if the price of

Refer to the information provided in Table 6.1 below to answer the question(s) that follow. Table 6.1 Number of Hamburgers per Day Total Utility Marginal Utility 1 30 2 52 3 67 4 76 5 4 Number of Sodas per Day Total Utility Marginal Utility 1 20 2 35 3 47 4 57 5 7 -Refer to Table 6.1. The total utility of five hamburgers per day is

Assume leisure is a normal good. The substitution effect of a wage increase implies a ________ demand for leisure and a ________ labor supply.

Total utility can be positive even when marginal utility is negative.

Price increases cause a decrease in a household's choice set.

Total utility is

Refer to the information provided in Figure 6.10 below to answer the question(s) that follow. Figure 6.10 -Refer to Figure 6.10. Kyle would increase his consumption of turkey sandwiches from 7 to 9 per week if their price fell from $6 to $4. This illustrates the idea of

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is CD. Molly's income is $200, the price of a DVD is $7.50 and the price of a CD is $10. At point C, she is buying ________ DVDs and ________ CDs.

Richard is consuming X and Y so that he is spending his entire income and MU_x/P_x = 6 and MU_y/P_y = 10. To maximize utility, he should

Hector has $2,000 a month to spend on clothing and food. The price of clothing is $50 and the price of food is 20. The clothing and food pairs in Hector's choice set include ________ units of clothing and ________ units of food.

Refer to the information provided in Table 6.1 below to answer the question(s) that follow. Table 6.1 Number of Hamburgers per Day Total Utility Marginal Utility 1 30 2 52 3 67 4 76 5 4 Number of Sodas per Day Total Utility Marginal Utility 1 20 2 35 3 47 4 57 5 7 -Refer to Table 6.1. The marginal utility of the second hamburger per day is

When consumers maximize utility, they are equating the ratio of marginal utility to price across all goods consumed.

Daisy is consuming X and Y so that she is spending her entire income and MU_x/P_x = 12 and MU_y/P_y = 10. To maximize utility, she should

Price decreases will ________ a household's choice set.

Homogeneous products are indistinguishable from each other.

Assume Gloria is initially in equilibrium and that X and Y are normal goods for her. Then the price of X falls. For Gloria to move to a new equilibrium point her consumption of