Arthur's preferences are defined over two basic food groups, beer, x1, and ice cream, x2.His utility function is u(x1, x2)=x21+ x2.He has $100 to spend, and each of these goods costs $10 per quart.

A) Arthur will consume 5 quarts of ice cream and 5 quarts of beer. B) Arthur will find that 10 quarts of beer and no ice cream is the best bundle. C) Arthur will find that 10 quarts of ice cream and no beer is the best bundle. D) Arthur is indifferent between any two points on the line that connects (5, 5)and (10, 10). E) Arthur will spend 2/3 of his income on beer and 1/3 of his income on ice cream. A) Arthur will consume 5 quarts of ice cream and 5 quarts of beer. B) Arthur will find that 10 quarts of beer and no ice cream is the best bundle. C) Arthur will find that 10 quarts of ice cream and no beer is the best bundle. D) Arthur is indifferent between any two points on the line that connects (5, 5)and (10, 10). E) Arthur will spend 2/3 of his income on beer and 1/3 of his income on ice cream.

Exam 4: Choice-Part A

Justin consumes goods x and y and has a utility function U(x, y)=x² + y.The price per unit of x is p_x and the price per unit of y is p_y.He has enough money so that he can afford at least 1 unit of either good.When he chooses his best affordable bundle,

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Question 61

Max Gross has the utility function U(x, y)= max{x, y}.If the price of x is the same as the price of y, Max will buy equal amounts of x and y.

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Question 62

Casper consumes cocoa and cheese.Cocoa is sold in an unusual way.There is only one supplier, and the more cocoa you buy from him, the higher the price you have to pay per unit.In fact y units of cocoa will cost Casper y² dollars.Cheese is sold in the usual way at a price of 2 dollars per unit.Casper's income is 20 dollars and his utility function is U(x, y)= x + 2y, where x is his consumption of cheese and y is his consumption of cocoa. a.Sketch Casper's budget set and shade it in. b.Sketch some of his indifference curves and label the point that he chooses. c.Calculate the amount of cheese and the amount of cocoa that Casper demands at these prices and this income.

(Essay)

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Question 63

Arthur's preferences are defined over two basic food groups, beer, x₁, and ice cream, x₂.His utility function is u(x₁, x₂)=x²₁+ x₂.He has $100 to spend, and each of these goods costs $10 per quart.

(Multiple Choice)

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Question 64

Showing 61 - 64 of 64

Exam 4: Choice-Part A

Justin consumes goods x and y and has a utility function U(x, y)=x2 + y.The price per unit of x is px and the price per unit of y is py.He has enough money so that he can afford at least 1 unit of either good.When he chooses his best affordable bundle,

Max Gross has the utility function U(x, y)= max{x, y}.If the price of x is the same as the price of y, Max will buy equal amounts of x and y.

Arthur's preferences are defined over two basic food groups, beer, x1, and ice cream, x2.His utility function is u(x1, x2)=x21+ x2.He has $100 to spend, and each of these goods costs $10 per quart.

Budget Constraint-Part A

Budget Constraint-Part B

Preferences-Part A

Preferences-Part B

Utility-Part A

Utility-Part B

Choice-Part B

Demand-Part A

Demand-Part B

Revealed Preference-Part A

Revealed Preference-Part B

Slutsky Equation-Part A

Slutsky Equation-Part B

Buying and Selling-Part A

Buying and Selling-Part B

Intertemporal Choice-Part A

Intertemporal Choice-Part B

Asset Markets-Part A

Asset Markets-Part B

Uncertainty-Part A

Uncertainty-Part B

Risky Assets-Part A

Risky Assets-Part B

Consumers Surplus-Part A

Consumers Surplus-Part B

Market Demand-Part A

Market Demand-Part B

Equilibrium-Part A

Equilibrium-Part B

Auctions-Part A

Auctions-Part B

Technology-Part A

Technology-Part B

Profit Maximization-Part A

Profit Maximization-Part B

Cost Minimization-Part A

Cost Minimization-Part B

Cost Curves-Part A

Cost Curves-Part B

Firm Supply-Part A

Firm Supply-Part B

Industry Supply-Part A

Industry Supply-Part B

Monopoly-Part A

Monopoly-Part B

Monopoly Behavior-Part A

Monopoly Behavior-Part B

Factor Markets-Part A

Factor Markets-Part B

Oligopoly-Part A

Oligopoly-Part B

Game Theory-Part A

Game Theory-Part B

Game Applications-Part A

Game Applications-Part B

Behavioral Economics

Exchange-Part A

Exchange-Part B

Production-Part A

Production-Part B

Welfare-Part A

Welfare-Part B

Externalities-Part A

Externalities-Part B

Information Technology-Part A

Information Technology-Part B

Public Goods-Part A

Public Goods-Part B

Asymmetric Information-Part A

Asymmetric Information-Part B

Filters

Justin consumes goods x and y and has a utility function U(x, y)=x² + y.The price per unit of x is p_x and the price per unit of y is p_y.He has enough money so that he can afford at least 1 unit of either good.When he chooses his best affordable bundle,

Arthur's preferences are defined over two basic food groups, beer, x₁, and ice cream, x₂.His utility function is u(x₁, x₂)=x²₁+ x₂.He has $100 to spend, and each of these goods costs $10 per quart.