Exam 13: Consumer Choice and Demand

-The figure above shows a consumer's budget line between sodas and DVD rentals.Point b represents an

-Which of the above figures reflects an increase in the price of fish?

Quantity Total utility Quantity Total utility 0 0 0 0 1 8 1 10 2 14 2 19 3 18 3 27 4 21 4 34 5 23 5 40 6 24 6 45 -The table above gives Ali's total utility from consuming bottles of soda and slices of pizza.The price of pizza is $2 per slice and the price of soda is $1 per bottle.Ali has $14 in his budget.When Ali maximizes his utility,his total utility equals

Does the fact that diamonds,which we do not need to survive,are more expensive than water,which is a necessity,constitute a violation of utility maximization?

Marginal utility is the

If a consumer has $30 to spend on apples and bananas,where on the apple axis would the consumer's budget line intersect if the price of apples is $3 a pound?

When a consumer's budget increases,the budget line

If Joan consumes 1 dinner roll,she has total utility of 15; if she consumes 2,she has total utility of 27; if she consumes 3,she has total utility of 37; and if she consumes 4,she has total utility of 45.What is the marginal utility of the fourth dinner roll consumed?

-Liz consumes two goods,candy bars and potato chips.Her budget is $4 per day.The price of a candy bar is $1.00 and the price of a bag of chips is 50 cents.Her utility is in the table above.For Liz to maximize her utility,what combination of candy bars and potato chips should she eat?

Kevin allocates his budget according to rules of utility maximization.What are the rules of utility maximization and how do they explain the paradox of value,which is that diamonds are expensive but useless,while water is inexpensive but essential?

Samantha has a budget of $40 and buys beef jerky and fried pork rinds.Her budget does not change and the price of both beef jerky and fried pork rinds increases.As a result,

-The table above gives Sam's marginal utility schedule for bananas and apples.Sam's fruit budget is $10. a.If bananas cost $1 per pound and apples cost $2 per bag,what is Sam's marginal utility per dollar for all quantities of both goods? b.What is the utility maximizing combination of bananas and apples for Sam? c.If the price of bananas increases to $2 per pound,how does Sam's marginal utility per dollar for bananas change? d.At the banana price of $2 per pound,what is the new utility maximizing combination of bananas and apples for Sam? e.List two points on Sam's demand curve for bananas.

A budget line will shift outward and not change its slope if

A curve that shows combinations of goods among which a consumer does not prefer one combination to another is

Normally shaped indifference curves are bowed towards the origin of the graph.The reason for this shape is

Moving along an indifference curve,if a consumer requires a small amount of the good measured along the y-axis to make up for one unit less of the good measured on the x-axis,then

An indifference curve shows

Paula is currently spending all of her budget and she finds that the marginal utility per dollar from dresses exceeds the marginal utility per dollar from hats.To maximize her utility,Paula should therefore buy

-The table above shows Buffy's utility from wooden stakes and cloves of garlic.The marginal utility of which clove of garlic is the largest?

At the point where the budget line is just touching an indifference curve at one point,