Exam 20: Consumer Choice

Marginal utility

Consumers are most satisfied when

A consumer optimum is characterized by

-In the above table, the total utility of 4 slices of pizza is

-Using the above table, diminishing marginal utility begins after the ________ glass of water is consumed.

The marginal utility derived from viewing the next movie DVD is the

-The price of a magazine is $2, the price of a paperback book is $5, and the consumer has $33. According to the above table, the rational consumer will purchase

If incomes fall, then

-Based on the information in the above table, what is the total satisfaction Mary can achieve if she is a wise consumer?

When the price of a good that a person is consuming falls, other things being constant, there is

The analysis of consumer decision making based on utility maximization is known as

An increase in income will

Assume that good X and good Y each have diminishing marginal utility for a consumer. In this case,

The real-income and the substitution effects reinforce each other by

An indifference curve between one dozen eggs and several dozens of eggs would be

Initially, a consumer is at an optimum. Then the price of X decreases. Consequently,

Which of the following statements is not true about marginal utility when total utility is at its maximum point?

A curve where every combination of the two goods being considered yields the same level of satisfaction is known as

The possible combinations of goods that can be purchased with a specific income are called the

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 $10. The price of Good B is $5. If John wants to maximize his utility he should