Exam 13: Consumer Choice and Demand

-The table above has different combinations of egg rolls and sushi rolls that Richard can buy.Richard's budget for egg rolls and sushi rolls is $120 per week.What are the prices of an egg roll and a sushi roll?

Points on a demand curve

The budget line is the boundary between

Joe has $100 a week to purchase either computer online service or film for his other hobby, photography.The price of on-line service is $5 an hour while the price of film is $10 a roll.Draw Joe's budget line in the figure below.

Suppose you have a $20 budget per week, the price of soda is $1 per bottle, and the price of pizza is $4 per slice.In the above below, draw a budget line for soda and pizza, placing soda on the horizontal axis.Correctly label the axes.

Suppose the price of a pair of jeans is $25 and the price of a T-shirt is $15.The consumer's budget is entirely allocated.If the marginal utility from a pair of jeans is 100 units and the marginal utility from a T-shirt is 75 units, the consumer is

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

Diminishing marginal utility means that an increase in the consumption of a good leads to

-Suppose that you consume only pizza, which costs $4 per slice, and Diet Pepsi, which costs $2 each.The table above gives your utility from consuming these two goods.If your income is $20, which of the following consumption combinations will you choose?

If a budget line rotates inward and becomes steeper, then the

When the indifference curve is steep, the consumer has a

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.If the price of yogurt increases, which of the following is true? i. The budget line rotates outward. ii. Yogurt's marginal utility per dollar decreases. iii. The relative price of yogurt increases.

Linda has $10 a month to spend on ice cream cones and chocolate bars.If the price of an ice cream cone is $2 a cone and the price of a chocolate bar is $1 a bar, which of the following is a point on Linda's budget line?

In a month, Samantha consumes the quantity of lobster dinners so that her marginal utility from a lobster dinner is 500 units.The price of a lobster dinner is $25.She also is consuming the quantity of spaghetti dinners so that its marginal utility is 300 units, while its price is $15.Samantha is allocating her entire budget.What should she do to maximize her total utility?

-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 is NOT able to purchase the combination of

Suppose the quantity of burgers is measured on the horizontal axis and the quantity of bags of French fries is measured on the vertical axis.The marginal rate of substitution for burgers is

-The above table shows Homer's utility from boxes of doughnuts.If Homer decreases his consumption of doughnuts from 4 boxes to 3 boxes, his

Which of the following is true if Clarice is at her consumer equilibrium? I∙Clarice is on her budget line. Ii∙Clarice is on her highest attainable indifference curve. Iii∙Clarice is dividing her budget equally across all goods.

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

What is the utility-maximizing rule?