Exam 10: Consumer Choice and Behavioral Economics

You wish to buy only one CD.Use the rule of equal marginal utility per dollar to determine which one to purchase: (a)Drake's latest CD for $15 which gives you 75 units of utility,or (b)Bob Dylan's "Shadows in the Night" for $10 that gives you 100 units of utility?

Giffen goods

________ is an experiment that tests the significance of fairness in consumer decision making.

Vinny consumes tacos and chicken wings.To keep his utility constant,he must consume more tacos if he consumes fewer chicken wings.This means that

In an experiment that employed the dictator game,economists at Cornell University gave student "allocators" the option of dividing $20 in only two ways (a)$18 for themselves and $2 to another student,or (b)$10 for themselves and $10 to another student.What was one result from this experiment?

Uber has come under criticism for its surge pricing because consumers see it as

The iPod is a product without any significant network externalities.

If Valerie purchases ankle socks at $5 and gets 25 units of marginal utility from the last unit,and bandanas at $3 and gets 12 units of marginal utility from the last bandana purchased,she

In order to derive an individual's demand curve for salmon,we would observe what happens to the utility-maximizing bundle when we change

Suppose Barry is maximizing his utility from consuming used paperback novels and audio books.The price of a used novel = $4 and the price of an audio book = $8.If the marginal utility of the last novel was 32 units of utility (utils)what was the marginal utility of the last audio book purchased?

Costs that have already been incurred,and which cannot be recovered,are known as

A consumer's utility-maximizing combination of goods is given by the bundle that corresponds to the point on

Consider a good whose consumption takes place publicly.Your decision to buy that good depends

Figure 10-8 -Refer to Figure 10-8.Given the budget constraint in the diagram,which of the following statements is false?

The economic model of consumer behavior explains how consumers' tastes and preferences are formed.

The amount of income a consumer has to spend on goods and services is known as

A consumer maximizes her total utility from a bundle of goods when her marginal utility from each good is equal.

Consider the following factors: A.culture B.religion C.customs D.prices E.income Which of the factors above are likely to influence the choices consumers make?

Economists have shown that when the ultimatum game experiment is carried out,both allocators and recipients act as if fairness is important.

Before digital photography,most film processing companies had a policy of printing every picture on a roll of film and allowing customers to request a refund for pictures that were not clearly developed.The companies did this knowing that most customers did not ask for refunds.This was an example of consumers