Exam 20: Consumer Choice

Behavioral economists focus on the assumption that

When Bo increases the consumption of Good X and decrease the consumption of Good Y, her marginal utility of

-Refer to the above table. Amy's utility schedule shows

-Refer to the above table. If the consumer's equilibrium consists of 3 movies and 6 apple pies, then we know that

-According to the above table, what is Tim's marginal utility of the 5th unit?

The price of a large pepperoni pizza used to be $12, but this week the price rose to $18. With a budget of just $28, you can't afford as many pizzas at the higher price. This change in consumer behavior reflects the

The total utility of water is

Marginal utility is measured as

-Refer to the above table. Which of the four people have utility schedules characterized by the law of diminishing marginal utility?

Which of the following statements is FALSE regarding consumer choice?

Why are diamonds more expensive than water?

-Refer to the above table. The marginal utility of the 6th movie for Michael is

-Use the above figure. When the budget line rotates from "c" to "b"

According to the text, can we conclude that people will consume goods until the marginal utility of each good is zero?

If marginal utility is zero, total utility is

-Refer to the above table. What is the marginal utility for the 3rd unit for Michael and for Rosie?

-Refer to the above figure. Which point represents the second highest level of utility?

In order to maximize utility, a consumer should allocate money income so that

-Refer to the above figure. Which point(s) represents the lowest level of utility?

-In the above table, the marginal utility of fifth slice of pizza is