Exam 4: Consumer Choice

4.5 Deriving Demand Curves -The above figure shows Bobby's indifference map for juice and snacks.Also shown are three budget lines resulting from different prices for snacks.As the price of snacks rises,Bobby's utility

Joe's budget constraint equals 500 = 2F + 100S,where $500 is Joe's income,$2 is the price of food (F,y-axis)and $100 is the price of shelter (S,x-axis).How much food can Joe buy if he buys one unit of shelter?

Indifference curves are downward sloping because of the assumption of

If Fred's marginal utility of pizza equals 10 and his marginal utility of salad equals 2,then

Economists assume consumers select a bundle of goods that maximizes their well-being subject to

4.5 Deriving Demand Curves -The above figure shows Bobby's indifference map for juice and snacks.Also shown are three budget lines resulting from different prices for snacks.Bobby's demand for snacks is

Joe's income is $500,the price of food (F,y-axis)is $2 per unit,and the price of shelter (S,x-axis)is $100.Which of the following represents his marginal rate of transformation of food for shelter?

If the price of one good increases while the price of the other good and the consumer's income remain unchanged,what will happen to the budget line?

The rate at which a consumer must give up y to get one more x is equal to

If two bundles are on the same indifference curve,then

If two indifference curves were to intersect at a point,this would violate the assumption of

In Spain,people are considered organ donors unless the explicitly indicate they do not want to be.In the United States,people are only considered organ donors if they explicitly indicate they wish to be.Behavioral economics would suggest that

If the utility function (U)between food (F)and clothing (C)can be represented as U = ,the marginal utility of food

If two goods are perfect substitutes,then the indifference curves for those two goods would be

If both prices increases by 50%

4.5 Deriving Demand Curves -The above figure shows Bobby's indifference map for juice and snacks.Also shown are three budget lines resulting from different prices for snacks.As the price of snacks rises,the price for juice

With respect to consuming food and shelter,two consumers face the same prices and both claim to be in equilibrium.We therefore know that

Consumers allocate their budgets among bundles because

Bounded rationality suggests that

Indifference curves cannot intersect.