Exam 19: Consumer Choice

Refer to Figure 19.2.With no budget constraint,a rational consumer will consume

Table 19.2 Quantity Consumed 1 2 3 4 Total Utility 15 30 Marginal Utility 15 9 3 In Table 19.2,the marginal utility of the third unit is

The farther an indifference curve is from the origin,the more total utility it yields.

If an individual demands a good,it means that he or she

In the article "Men vs.Women: How They Spend,"

Price discrimination typically occurs with products that consumers buy regularly.

Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.In Figure 19.3,given an income of $30 and a price for good Y of $1,which of the following two points represent optimal consumption?

According to the law of demand,ceteris paribus,

Airline companies engage in price discrimination by

Under what conditions can sellers engage in price discrimination?

The ________ surplus will rise if the price of the good ________.

Which of the following statements best captures the concept of consumer surplus?

Status and ego considerations in consumption are economic explanations of demand.

The law of diminishing marginal utility gives us insight into the downward-sloping demand curve because consumers are willing to pay a higher price for goods with high marginal utility.

Suppose Caesar allocates his entire budget to the purchase of soft drinks and chips.The marginal utility of the last bottle of soft drink purchased is 12 utils,and each bottle costs $1.20.The marginal utility of the last bag of chips purchased is 8 utils,and each bag costs $1.In order to maximize his utility,Caesar should

Price discrimination only occurs when consumers have only partial information about a product's price and availability.

A successful advertising campaign induces consumers to buy more of a product at any given price than before.

When economists refer to the determinants of demand,they are referring to factors that when changed,

Josh is eating pizza at his favorite Italian restaurant.Below is his utility from this consumption: Table 19.1 Slice of Pizza Total Utility Marginal Utility First slice 20 20 Second slice 39 19 Third slice - 15 Fourth slice 59 - Refer to Table 19.1.For Josh,diminishing marginal utility begins

Josh is eating pizza at his favorite Italian restaurant.Below is his utility from this consumption: Table 19.1 Slice of Pizza Total Utility Marginal Utility First slice 20 20 Second slice 39 19 Third slice - 15 Fourth slice 59 - Refer to Table 19.1.What is Josh's total utility from consuming the third slice of pizza?