Exam 13: Consumer Choice and Demand

Ricardo likes to rent videos and attend concerts.The videos cost $4 and the concerts cost $40.Ricardo's marginal utility from the last video is 20 units.Ricardo is maximizing his utility.What is his marginal utility from the last concert he attended?

Carter spends his entire budget on pizza and Pepsi.He maximizes his utility when he allocates his entire available budget and buys pizza and Pepsi so that the

The utility-maximizing rule says that consumers must

Marginal utility per dollar is calculated by ________ the price of the good.

Timmy makes $100 per week as a taxidermist.He spends all this income to buy pizza and hair gel.The price of a pizza is $10 and the price of a bottle of hair gel is $4.If Timmy buys 6 pizzas per week,how many bottles of gel can he purchase?

-The figure above shows Sarah's budget line.Sarah earns $500 per week selling baskets made out of tree vines.With this money she buys sushi and rose bushes.Each piece of sushi costs $1 and each rose bush costs $10.Sarah will be at what point on her budget line if she spends $200 per week on sushi?

Bottles of Soda Slices of Pizza -The table above gives Ali's total utility from consuming bottles of soda and slices of pizza.The price of pizza is $2 per slice and the price of soda is $1 per bottle.Ali has $14 in his budget.When Ali maximizes his utility,how many slices of pizza does he buy?

Using Gabriel's budget line and his indifference curves between horseback riding lessons and baseball lessons,and then changing the prices of each activity holding his income constant,which of the following can be derived?

In an indifference curve/budget line diagram,a consumer's equilibrium consumption combination will occur

-Which of the above figures reflects an increase in the price of fish?

-Given the data in the above table,what is the marginal utility of the second quart of ice cream?

Assume you are in a store looking at a shirt you want.You expect to buy the shirt until you look at the price,then you decide the shirt is not a good buy.How can your decision be viewed in economic terms?

Which of the following statements is correct?

Suppose that Misty likes pizza and hotdogs.If her marginal utility per dollar from pizza is 6 and from hotdogs it is 5,Misty

Suppose that Hank consumes only Mountain Dew and pizza.If Hank's total utility from all amounts of both Mountain Dew and pizza double from what they were before,then Hank's demand for

Bottles of Soda Slices of Pizza -The table above gives Ali's total utility from consuming bottles of soda and slices of pizza.The price of pizza is $2 per slice and the price of soda is $1 per bottle.Ali has $14 in his budget.When Ali maximizes his utility,his total utility equals

-The table above gives Matt's utility from consuming slices of pizza.His marginal utility from the 3rd slice is

You are studying with a friend,and your friend says "To maximize utility,a consumer must consume the combination of goods so that the marginal utility of good X equals the marginal utility of good Y." Explain whether your friend's statement is correct or incorrect.

Juan's marginal utility from strawberries is 200 and his marginal utility from cream is 100.Juan spends all his budget.The price of strawberries is $5 per pound and the price of cream is $5 per pint.To maximize his utility,Juan should

-The above table shows Homer's utility from boxes of doughnuts.As Homer's consumption of doughnuts increases,his