Exam 5: Consumer Choice

In Longolia,beer drinking is associated with blood types.The demand for beer of the three major blood groups is shown below: -Refer to the above information to answer this question.If the beer producers charged the same price to all consumers,in order to maximize total revenue what would that price be?

Refer to Table 5.14 to answer this question.What are the missing numbers in the marginal utility column?

The following table shows Pierre's utility for bagels and cider. -Refer to the above information to answer this question.If Pierre has a budget of $12,the price of bagels is $1 and cider is $2,what will be the total utility of his optimal purchase?

The following graph shows the total utility obtained from rice crackers and beer by Carla. -Refer to the above graph to answer this question.If the price of both rice crackers and beer are $2,and Carla has a budget of $14,how much of each will she purchase if she wishes to maximize her total utility?

The term "marginal" means the difference between averages.

Suppose that Melissa spends recreation time and money on two leisure activities: Tennis and fishing.The cost per hour of tennis (court fees)and per hour of fishing (boat rentals)is $4.The table below shows the total utility that Melissa derives from the two activities. a)Complete the columns of marginal utilities. b)Assume that Melissa has a budget of $20.To maximize her total utility,how much would she allocate her spending between the two activities? What is the resulting total utility? c)At the end of the day,Melissa digs deep in her pocket and discovers an extra $4.If she allocates this additional spending between the two activities so as to maximize her total utility,what will be the final totals? d)Suppose that Melissa's utility from the two activities remains unchanged the next day,when she arrives with $20 in her pocket.To her pleasure,she discovers that the hourly charge on court fees has decrease to $3.How will she allocate her expenditures in order to maximize her total utility?

In order for price discrimination to work,three conditions must be fulfilled.Which of the following is not one of those conditions?

You have just spent two hours studying microeconomics and this has made you very hungry.You have $10 to spend on a snack and decide to go to Taco Bell.Putting your newly acquired economics knowledge to use,you have developed the following table to assist with your purchase decision: (a)Fill in the missing values in the table above. (b)If you bought 6 tacos and 2 burritos are you maximizing your utility? Explain.

Refer to Table 5.15 to answer this question.Suppose that the price of an apple is $2 and the price of a banana is $1 and this consumer has $8 to spend.In order to maximize her total utility,how many of each should she purchase?

What is marginal utility?

-Refer to the graph above to answer this question.The graph shows a tennis coach charges $20 per hour for tennis lessons for adults and $10 per hour for tennis lessons for children.What is the total revenue of the tennis coach?

The following table shows the utility (measured in dollars)which Lisa derives from water (in 50 litre drums)and diamonds (uncut 1 carat stones). -Refer to the above information to answer this question.If the price of both water and diamonds is $100 per unit,and Lisa has $500 to spend,how many units of each would she purchase?

The following table shows Erica's utility for muffins and grapefruit. -Refer to the above information to answer this question.If Erica has a budget of $8 and the price of both muffins and grapefruit are $1,what will be her optimal purchase?

What is price discrimination? What conditions must exist in order for price discrimination to be practiced?

Suppose that Irina is prepared to pay a maximum of $2.40 for her first glass of cranberry juice,but for each subsequent glass she is only prepared to pay 20 cents less than the previous one. -Refer to the above information to answer this question.If the price of cranberry juice is 80 cents per glass,how many glasses will she purchase?

-Refer to Figure 5.5 to answer this question.If partial units cannot be purchased,at what price is the total consumer surplus equal to $21?

-Refer to the graph above to answer this question.At what quantity would this consumer maximize her total utility?

-Refer to the information above to answer this question.If the price of this product is $5,how many units should this consumer purchase?

What does marginal utility mean,and what is the law of diminishing marginal utility?

Which of the following statements is true about price discrimination?