Exam 13: Consumer Choice and Demand

Reb earns $1,000 per week as a fishing guide in Texas.With this money he buys fishing lures and steaks.Lures cost $5 each,steaks cost $10 each.With this level of income,which consumption points are not possible?

In economics,utility

One reason why the price of diamonds is so high is because the

A preference map is a

If the price of a soda is $1 and the price of a sub sandwich is $5,the relative price of a sub sandwich is ________ because ________.

Moving along an indifference curve,if a consumer requires a small amount of the good measured along the y-axis to make up for one unit less of the good measured on the x-axis,then

As more of a good is consumed,total utility

-The table above shows Buffy's utility from wooden stakes and cloves of garlic.The marginal utility of which clove of garlic is the largest?

Explain the paradox of value.

One reason why water is cheap compared to diamonds is because the

At the best affordable point,

A consumption point inside the budget line

Consumers' preferences are described by

A point where the budget line is just touching an indifference curve at one point is

Does the fact that diamonds are so expensive imply that the demand curve for diamonds has a positive slope? Use marginal utility theory to answer the question.

Diminishing marginal utility means that

An indifference curve shows all combinations of two goods

How can restaurants offer all-you-can-eat specials without fear of going bankrupt?

Billy has a $20 budget to spend on yogurt and cereal.Yogurt cost $2 each and cereal costs $4 each.Suppose that the quantity of yogurt is on the vertical axis and the quantity of cereal is on the horizontal axis.The budget line's vertical intercept equals ________. A) $10 B) 5 yogurts C) 10 yogurts D) 5 cereals E) None of the above answers is correct.

Utility is the