Exam 19: Consumer Choice Appendix: Indifference Curves

The In the News article titled "Men vs.Women: How They Spend" differentiates the spending habits of women and men: "Men spend almost twice as much as women do on electronic equipment … young women spend twice as much money on clothing,personal care items,and their pets." Which determinant of demand is most likely involved?

Total utility is

When choosing among products,consumers look at

If advertising is successful,

The four determinants of demand that are held constant when we consider a movement along a demand curve include all of the following except

The mix of consumer purchases that maximizes the utility attainable from available income is called the

If a product has a high marginal utility,then

- Refer to Figure 19.2.Total utility is maximized at

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

When sellers price discriminate,

Assume Amanda always maximizes her total utility given her budget constraint.Every morning for breakfast she has two eggs and three sausages.If the marginal utility of the last egg is 10 utils and the price of eggs is $1 each,what can we say about the marginal utility of the last sausage if the price of each sausage is $2?

-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 $3,the consumer would maximize utility by consuming

The _________ of the demand curve corresponds to the idea that the marginal utility for the first few goods is _____________________.

Explain how a successful advertising campaign will affect the demand curve for the product being advertised.

Car dealers can easily price discriminate because

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

An individual's consumer surplus is the difference between the maximum price that she or he is willing to pay and the actual price.