Exam 19: Consumer Choice Appendix: Indifference Curves

Sociopsychiatric explanations of consumer behavior include the

An indifference map shows

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

Which industry here is unlikely to exhibit price discrimination?

Psychology and sociology focus on what creates desires for goods,but economics focuses on what consumers actually purchase.

- Refer to Table 19.1.For Josh,diminishing marginal utility begins

Maximum utility is achieved when

Consumer surplus is represented graphically under the demand curve and below the equilibrium price.

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.

Graphically,as a consumer buys more of a good,the marginal utility line will

Price discrimination occurs when stores mark down products for sale.

-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.If the price per unit of good X is $1,the consumer would maximize utility by consuming

Sellers can gain profits from price discrimination because

Marginal utility represents the additional satisfaction obtained from one more unit of a good or service.

Price discrimination occurs when

All of the possible combinations of two goods that lie on one indifference curve

According to the law of demand,ceteris paribus,

- Refer to Table 19.1.What is Josh's total utility from consuming the third slice of pizza?

Price discrimination is ________ in the United States and ________ practiced.

A successful advertising campaign will make demand for a product less price-elastic.