Exam 7: Demand: Consumer Choice

The below indifference map shows the various combinations of hours of music and apples that yield different levels of utility.Figure 7.1 -When the budget line for two goods is just tangent to the highest achievable indifference curve, then _____.

The table below shows the total utility associated with various units of goods X and Y.Table 7.5 -Following a decrease in the price of a good, an individual will purchase more of the now less expensive good and less of other more expensive goods. This is known as the _____ effect.

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3 -According to the law of diminishing utility, _____.

The below indifference map shows the various combinations of hours of music and apples that yield different levels of utility.Figure 7.1 -Which of the following explains why indifference curve I₂ should not cross indifference curve I₁ as shown in Figure 7.1?

The table given below depicts the total utility derived from the consumption of a good.Table 7.1 -If total utility increases by smaller and smaller amounts as more units of a product are consumed, then marginal utility is:

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3 -Assume MU_X = 30 utils, MU_Y = 15 utils, P_X = $2, and P_Y = $0.50. This consumer:

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3 -In Figure 7.3, if the price of one unit of good X and one unit of good Y is $30 and $20, respectively, the consumer's income is _____.

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3 -In economic theory, the idea of the equimarginal principle, or consumer equilibrium, means:

The table given below reports the total utility derived by an individual from the consumption of different units of goods A, B, and C.Table 7.4 -A consumer is in equilibrium when:

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3 -Individuals behave so as to maximize their utility.

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3 -A consumer is in equilibrium when the slope of his or her indifference curve is equal to his or her budget constraint.

The table given below reports the total utility derived by an individual from the consumption of different units of goods A, B, and C.Table 7.4 -Refer to Table 7.4. If the consumer's income increases from $10 to $20 but the prices of each of the goods doubles, the consumer would maximize utility by purchasing _____.

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3 -Mr. Rational has $27 that he plans to spend purchasing 5 units of good X (priced at $3 per unit) and 6 units of good Y (priced at $2 per unit). The marginal utility of the fifth unit of X is 30, and the marginal utility of the sixth unit of Y is 30. If Mr. Rational is a utility maximizer, he should:

The table given below depicts the total utility derived from the consumption of a good.Table 7.1 -If one were to plot the data from Table 7.1 (with utility on the vertical axis and quantity of the good on the horizontal axis):

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3 -If a good is free, a rational consumer will continue to consume that good, irrespective of its marginal utility.

The below indifference map shows the various combinations of hours of music and apples that yield different levels of utility.Figure 7.1 -The different combinations of any two goods that an individual can afford to purchase, given his income and prices, is shown by:

The table below shows the total utility associated with various units of goods X and Y.Table 7.5 -An indifference map shows _____.

The table given below depicts the total utility derived from the consumption of a good.Table 7.1 -Marginal utility diminishes more quickly:

The below indifference map shows the various combinations of hours of music and apples that yield different levels of utility.Figure 7.1 -According to Figure 7.1, which of the following is incorrect?

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3 -Suppose that there are five bottles of lemonade, each of which gives a consumer the same level of utility. According to the law of diminishing marginal utility, how can the consumer receive the highest utility?