Exam 20: Consumer Choice

When DVDs and hamburgers were the same price, Mavis consumed 3 hamburgers and 5 DVDs, and Mavis received 10 utils from the last hamburger and 15 utils from the last DVD consumed. What should be Mavis' consumption strategy?

Suppose Isaac's marginal utility from attending his 5th White Sox game was 40 and the marginal utility from attending his 1st U2 concert was 200. Assume that the price of a Sox ticket is $20 and the price of a U2 ticket is $120. Which of the following would be true?

If marginal utility is zero,

The principle of diminishing marginal utility suggests that

When the marginal utility per dollar of good x exceeds the marginal utility per dollar of good y,

The consumer optimum for consuming two goods is achieved when

Suppose that an individual consumes only two goods. What will happen to the individual if her last dollar spent on one good yields more marginal utility than that from another good?

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

Utility analysis is the analysis of

A rational consumer will NEVER purchase a product when its

If the last $5 spent on movies added 30 utils to your total satisfaction and the last $8 spent on books add 64 utils,

-Refer to the above figure. Which point(s) represents the lowest level of utility?

A rational individual will never consume a unit of a good if its

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 $1. If John wants to maximize his utility he should

The slope of the budget line is

The amount of pleasure or satisfaction derived from consumption of a good is called

-Given the above figure, if Joey was a rational consumer he would NOT eat more than ________ piece(s) of pizza.

If two units of a good provide 7 utils and the marginal utility of the third unit of the good is 2 utils, what is the total utility from consuming three units of the good?

When the price of a normal good decreases, people increase their consumption of the good. The reason is

Explain how utility analysis can be used to derive a downward sloping demand curve.