Exam 13: Consumer Choice and Demand

Suppose Jenny's marginal utility from another serving of fish is 40 and her marginal utility from another serving of chips is 20.The price of a serving of fish is $10 and the price of a serving of chips is $1.What should Jenny do to maximize her utility? Explain your answer.

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Question 1

Correct Answer:

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Jenny should buy more chips and fewer fish.Her marginal utility per dollar from chips is 20 and her marginal utility per dollar from fish is 4.If Jenny decreases her purchases of fish by $1,she loses 4 units of utility.But if she spends the dollar on chips,she gains 20 units of utility.Because her gain in utility exceeds her loss,Jenny's total utility increases as she buys more chips and fewer fish.

Which of the following statements is correct?

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Question 2

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An indifference curve shows

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Question 3

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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?

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Question 4

As more of a good is consumed,the marginal utility of an additional unit ,so consumers are willing to pay for an additional unit.

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Question 5

-Give the data in the above table,what is the marginal utility of the second quart of ice cream?

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Question 6

Billy has a $20 budget to spend on yogurt and cereal.Yogurt cost $2 each and cereal costs $4 each.Suppose that the quantity of yogurt is on the vertical axis and the quantity of cereal is on the horizontal axis.The budget line's vertical intercept equals ________.

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Question 7

Bottles of Soda Slices of Pizza -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,how many slices of pizza does he buy?

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Question 8

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

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Question 9

Describe the consumer equilibrium in the indifference curve/budget line model.

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Question 10

-The table above shows Buffy's utility from wooden stakes and cloves of garlic.If Buffy increases her consumption of wooden stakes from 4 to 5 stakes,her marginal utility from the 5th stake is

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Question 11

When Bo is at his best affordable consumption point,his marginal rate of substitution is

(Multiple Choice)

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Question 12

Suppose Abe is allocating his entire income and he receives 100 units of utility per dollar from the tenth slice of pizza and 200 units of utility per dollar from his second soda.Is Abe maximizing his utility? Should Abe change his consumption of pizza and soda?

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Question 13

Suppose that Misty likes pizza and hotdogs.If her marginal utility per dollar from pizza is 6 and from hotdogs it is 5,Misty

(Multiple Choice)

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Question 14

The benefit that John gets from eating an additional grape is called the ________ the grape.

(Multiple Choice)

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Question 15

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?

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Question 16

In a preference map,consumption combinations on higher indifference curves

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Question 17

Gertrude has a $15 budget to spend on soda and crackers.Soda costs $1 per bottle and crackers cost 50¢ each.The quantity of soda is measured on the vertical axis.If the price of soda increases to $2 per bottle and the price of crackers increase to $1 each,the

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Question 18

What is "marginal utility?"

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Question 19

If a person consumes only two goods,which of the following is NOT necessary for a consumer to be at his or her best affordable point of consumption?

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Question 20

Showing 1 - 20 of 287

Suppose Jenny's marginal utility from another serving of fish is 40 and her marginal utility from another serving of chips is 20.The price of a serving of fish is $10 and the price of a serving of chips is $1.What should Jenny do to maximize her utility? Explain your answer.

Which of the following statements is correct?

An indifference curve shows

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?

As more of a good is consumed,the marginal utility of an additional unit ,so consumers are willing to pay for an additional unit.

-Give the data in the above table,what is the marginal utility of the second quart of ice cream?

Billy has a $20 budget to spend on yogurt and cereal.Yogurt cost $2 each and cereal costs $4 each.Suppose that the quantity of yogurt is on the vertical axis and the quantity of cereal is on the horizontal axis.The budget line's vertical intercept equals ________.

Bottles of Soda Slices of Pizza -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,how many slices of pizza does he buy?

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

Describe the consumer equilibrium in the indifference curve/budget line model.

-The table above shows Buffy's utility from wooden stakes and cloves of garlic.If Buffy increases her consumption of wooden stakes from 4 to 5 stakes,her marginal utility from the 5th stake is

When Bo is at his best affordable consumption point,his marginal rate of substitution is

Suppose Abe is allocating his entire income and he receives 100 units of utility per dollar from the tenth slice of pizza and 200 units of utility per dollar from his second soda.Is Abe maximizing his utility? Should Abe change his consumption of pizza and soda?

Suppose that Misty likes pizza and hotdogs.If her marginal utility per dollar from pizza is 6 and from hotdogs it is 5,Misty

The benefit that John gets from eating an additional grape is called the ________ the grape.

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?

In a preference map,consumption combinations on higher indifference curves

Gertrude has a $15 budget to spend on soda and crackers.Soda costs $1 per bottle and crackers cost 50¢ each.The quantity of soda is measured on the vertical axis.If the price of soda increases to $2 per bottle and the price of crackers increase to $1 each,the

What is "marginal utility?"

If a person consumes only two goods,which of the following is NOT necessary for a consumer to be at his or her best affordable point of consumption?

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 13: Consumer Choice and Demand

Suppose Jenny's marginal utility from another serving of fish is 40 and her marginal utility from another serving of chips is 20.The price of a serving of fish is $10 and the price of a serving of chips is $1.What should Jenny do to maximize her utility? Explain your answer.

Which of the following statements is correct?

An indifference curve shows

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?

As more of a good is consumed,the marginal utility of an additional unit ________,so consumers are willing to pay ________ for an additional unit.

-Give the data in the above table,what is the marginal utility of the second quart of ice cream?

Billy has a $20 budget to spend on yogurt and cereal.Yogurt cost $2 each and cereal costs $4 each.Suppose that the quantity of yogurt is on the vertical axis and the quantity of cereal is on the horizontal axis.The budget line's vertical intercept equals ________.

Bottles of Soda Slices of Pizza -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,how many slices of pizza does he buy?

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

Describe the consumer equilibrium in the indifference curve/budget line model.

-The table above shows Buffy's utility from wooden stakes and cloves of garlic.If Buffy increases her consumption of wooden stakes from 4 to 5 stakes,her marginal utility from the 5th stake is

When Bo is at his best affordable consumption point,his marginal rate of substitution is

Suppose Abe is allocating his entire income and he receives 100 units of utility per dollar from the tenth slice of pizza and 200 units of utility per dollar from his second soda.Is Abe maximizing his utility? Should Abe change his consumption of pizza and soda?

Suppose that Misty likes pizza and hotdogs.If her marginal utility per dollar from pizza is 6 and from hotdogs it is 5,Misty

The benefit that John gets from eating an additional grape is called the ________ the grape.

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?

In a preference map,consumption combinations on higher indifference curves

Gertrude has a $15 budget to spend on soda and crackers.Soda costs $1 per bottle and crackers cost 50¢ each.The quantity of soda is measured on the vertical axis.If the price of soda increases to $2 per bottle and the price of crackers increase to $1 each,the

What is "marginal utility?"

If a person consumes only two goods,which of the following is NOT necessary for a consumer to be at his or her best affordable point of consumption?

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

As more of a good is consumed,the marginal utility of an additional unit ,so consumers are willing to pay for an additional unit.