Exam 8: Utility and Demand

Gene plays another hour of computer games rather than study for the hour even though he knows that the next day when he takes his test he will regret his decision.Gene is showing

The first can of Sprite Jack drinks give him 22 units of utility and the second can gives him an additional 12 units of utility.How many units of utility do the two cans of Sprite give Jack?

Use the table below to answer the following question. Table 8.2.5 -Refer to Table 8.2.5.Cindy enjoys golf and tennis.The table shows the marginal utility she gets from each activity. Cindy has $70 a month to spend,and she can spend as much time as she likes on her leisure pursuits.The price of an hour of golf is $10,and the price of an hour of tennis is $5. Cindy decides to golf for 5 hours a month and play tennis for 4 hours a month. If Cindy spends a dollar more on golf and a dollar less on tennis,her total utility ________. If Cindy spends a dollar less on golf and a dollar more on tennis,her total utility ________.

A budget line is drawn with the

Max has $35 a day to spend,and he can spend as much time as he likes on his leisure pursuits.Windsurfing equipment rents for $10 an hour,and snorkeling equipment rents for $5 an hour.If Max equalizes the marginal utility per hour from windsurfing and from snorkeling,he

As more of a good is consumed,its

If the marginal utilities from two goods are not equal,then the consumer

Suppose a consumer spends all his income.His marginal utility per dollar on X is 4 and marginal utility per dollar on Y is 2.We know that

Bounded self-interest

In consumer equilibrium,

You are consuming hot dogs and Cokes and believe you are maximizing utility for your entire budget of $12.The price of a hot dog is $2 and the price of a Coke is $2.Suppose the price of hot dogs rises to $4 and the price of a Coke remains at $2.You adjust your consumption of hot dogs and Cokes and believe you are once again receiving maximum total utility from the meal.Which one of the following can you conclude?

If Katie purchases two slices of pizza and six breadsticks to maximize her total utility,then

Geneva is not at her consumer equilibrium for movies and music downloads.Why?

To determine consumer equilibrium we need to know only

The paradox of value

If the price of a good increases,everything else remaining the same,then the consumer's total utility

Beverly is currently in consumer equilibrium.An increase in her income

If a consumer's income increases and if all goods are normal goods,

The marginal utility per dollar from pizza is greater than the marginal utility per dollar from pop.To maximize utility,a consumer buys

Marginal utility theory derives