Exam 13: Consumer Choice and Demand

-Suppose that you consume only pizza,which costs $4 per slice,and Diet Pepsi,which costs $2 each.The table above gives your utility from consuming these two goods.If your income is $14,which of the following consumption combinations will you choose?

Marginal utility is equal to which of the following?

A relative price is the

To maximize utility,why does a consumer consume the combination of goods that equates marginal utility per dollar from the different goods rather than just equating the marginal utility of the different goods?

Reb buys fishing lures and steaks.If his budget increases,the maximum number of fishing lures he can purchase ________ and the maximum number of steaks he can purchase ________.

Gertrude has a $15 budget to spend on soda and crackers.Soda costs $1 per bottle and crackers cost 50¢ each.The quantity of soda is measured on the vertical axis.If the price of soda increases to $2 per bottle and the price of crackers increase to $1 each,the

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

In a budget line/indifference curve diagram,at the consumer's equilibrium at the best affordable point,

An indifference curve is a line that shows combinations of goods among which a consumer

The figure above shows two budget lines. -Based on the figure above,which of the following would lead the budget line to change from BL? to BL??

Points on a demand curve

The point where an indifference curve just touches the budget line at one point

At all points on a demand curve,the i.consumer's budget has been allocated to maximize total utility. ii.quantity is the quantity demanded at each price when total utility is maximized. iii.price represents the marginal benefit the consumer gets from an extra unit of a good.

-Suppose that you consume only pizza,which costs $4 per slice,and Diet Pepsi,which costs $2 each.The table above gives your utility from consuming these two goods.If your income is $20,which of the following consumption combinations will you choose?

What does the slope of the budget line equal?

When a consumer's budget increases,the budget line

Brenda's marginal utility per dollar from the second hamburger is 20.Her marginal utility from the third hamburger would be

As Shaniq drinks additional cups of tea at breakfast,Shaniq's

Kevin allocates his budget according to rules of utility maximization.What are the rules of utility maximization and how do they explain the paradox of value,which is that diamonds are expensive but useless,while water is inexpensive but essential?

An increase in a consumer's budget