Exam 13: Consumer Choice and Demand

If Sarah gets 40 units of utility from her first piece of toast for breakfast and a total of 70 units from two pieces of toast,then the marginal utility of the first piece is ________ units and the marginal utility of the second piece is ________ units.

At the best affordable point,

For a consumer,the marginal utility of good A is 25 and its price is $5.The marginal utility of good B is 60 and its price is $12.The consumer has allocated his entire budget.Is this consumer maximizing his total utility? Explain your answer.

Suppose a consumer has $100 to spend on two goods,shoes and shirts.If the price of a pair of shoes is $20 per pair and the price of a shirt is $15 each,which of the following combinations is unaffordable to the consumer?

The figure above shows one of a consumer's indifference curves. -The marginal rate of substitution (MRS)at point G equals

Reb buys fishing lures and steaks.If his budget increases,the maximum number of fishing lures he can purchase ________ and the maximum number of steaks he can purchase ________.

The slope of the budget line represents an opportunity cost because,moving along the line,

When the price of a good a consumer buys rises,the consumer's budget line

Is "utility" another word for the cost we give up when we consume a good?

In a budget line/indifference curve diagram,at the consumer's equilibrium at the best affordable point,

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 he buys ________ bottles of soda and ________ slices of pizza.

Assume you are in a store looking at a shirt you want.You expect to buy the shirt until you look at the price,then you decide the shirt is not a good buy.How can your decision be viewed in economic terms?

-The figure above shows Sarah's budget line.Sarah earns $500 per week selling baskets made out of tree vines.With this money she buys sushi and rose bushes.Each piece of sushi costs $1 and each rose bush costs $10.Sarah will be at what point on her budget line if she spends $200 per week on sushi?

Juan's marginal utility from strawberries is 200 and his marginal utility from cream is 100.Juan spends all his budget.The price of strawberries is $5 per pound and the price of cream is $5 per pint.To maximize his utility,Juan should

You consume hamburgers and hot dogs.If the price of a hamburger increases while the price of a hot dog and your budget do not change,then your budget line will

How can restaurants offer all-you-can-eat specials without fear of going bankrupt?

Marginal utility per dollar is calculated by ________ the price of the good.

Sue consumes oysters and clams.Pounds of oysters are measured on the y-axis and pounds of clams on the x-axis.If the slope of Sue's budget line is 5 pounds of oysters per pound of clams,Sue must

An indifference curve shows

If the price of steak rises,a consumer who had been maximizing his or her utility before will buy less steak because its