Exam 20: Consumer Choice

A set of indifference curves on a graph is called

Economists use what term to describe the want-satisfying power of a good?

-Refer to the above figure. Given the indifference map and budget constraint represented above, what would make all possible points attainable for the individual to consume?

To derive the demand curve from the indifference map,

John is currently spending all of his income. For the last unit of Good A consumed John gets 20 utils and for the last unit of Good B consumed he gets 10 utils. The price of Good A is $4. The price of Good B is $2. If John wants to maximize his utility he should

Why does total utility rise at a decreasing rate as an individual's consumption of an item increases?

-When you tell your mother, "I'll never be tired of your cooking," you are saying the

If marginal utility is zero,

An indifference curve

Bill ate four hot dogs at the baseball game. The first one tasted best, but he found that as he ate more hot dogs the amount of extra satisfaction he was receiving was beginning to fall. This would demonstrate

The quantity of good Y is measured along the vertical axis, and the quantity of good X is measured along the horizontal axis. If the prices of both good Y and good X rise, the budget line

-Refer to the above table. If the price of Good X is $2, the price of Good Y is $1, and the consumer has $9, the rational consumer will purchase

-According to the above table, what is Robert's marginal utility of the 5th unit?

To derive the demand curve for good X, all the following are constant EXCEPT

-In the above figure, if the budget line is the line DE, the consumer will maximize utility at point

The slope of the budget constraint line is the

An indifference curve provides the set of consumption alternatives that

In economics, another term for satisfaction is

If a consumer is at an optimum, consuming X and Y, and the price of X decreases, then to get to a new equilibrium the consumer must

How does an increase in the price of an individual good or service affect a consumer optimum, and how does this help explain the law of demand?