Exam 13: Consumer Choice and Demand

-The figure above shows one of Bob's indifference curves for CDs and books. a∙Is the indifference curve steeper at point a or point b? b∙What is Bob's marginal rate of substitution at point a? c∙What is Bob's marginal rate of substitution at point b?

Suppose that Jen receives 400 units of utility from her last soda and 200 units of utility from her last slice of pizza.What can we conclude about Jen's choices if the price of a soda is $1 and the price of a slice of pizza is $2?

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

The solution to the paradox of value is found by looking at which of the following?

When Chris maximizes his total utility, then his entire available budget is allocated in such a way that the

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.

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 ________.