Exam 20: Consumer Choice

Consumers do NOT buy as many units of each good as they want because

When a consumer is at the consumer optimum

Marginal utility is

Assume that Katie has the preferences shown in the above table. Also assume that the price of a can of Pepsi is $3.00 and that the price of a slice of pizza is $1.00. If he has $16 available to spend, what combination of Pepsi and pizza will be her consumer optimum?

An indifference curve provides the set of consumption alternatives that

What is the relationship between marginal utility and total utility? What happens to total utility as marginal utility declines?

The total utility from consuming 8 units of a good is 155. The marginal utility of the 8th unit is 7 and the marginal utility of the 7th unit is 11. The total utility from consuming 6 units of the good is

The concept of utility is

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

When we graph total utility, the total utility curve will

Typically, an individual takes only one newspaper from the bin because

When consumers shift away from relatively higher price goods and services in favor of those that are less expensive, this is known as the

A consumer was at an optimum. She then discovers that the marginal utility per dollar spent on food is more than the marginal utility per dollar spent on movies. She knows then that

-Refer to the above table. If the price of Good A is $2, the price of Good B is $2, and the consumer has $14, the rational consumer will purchase

If an individual's total utility from consuming two goods decreases, then there must be

If an individual's utility from consuming two goods increases, then there must be

If total utility is unchanged, then marginal utility is

In economics, utility is defined as

Consumers are most satisfied when

When you purchase the lower-priced store brand bread instead of the more expensive name brand, you are experiencing