Exam 6: Consumer Behaviour

Suppose a consumer can purchase only two goods, beef and chicken. If the price of beef falls with all other variables held constant), and the consumption of chicken increases, we can conclude that the increased consumption of chicken is due to

FIGURE 6-9 -Refer to Figure 6-9. In part ii), the line joining points X, Y, and Z is known as , which shows how )

Given a typical downward-sloping demand curve in a market that has reached its equilibrium, the consumer surplus

In indifference curve analysis, the consumerʹs utility-maximizing point is where

FIGURE 6-5 -Refer to Figure 6-5. For both goods, the price increases from P0 to P1. The substitution effect is illustrated by the change in quantity demanded from A to B; the income effect is illustrated by the change in quantity demanded from B to C. Good X is certainly an) good.

The table below shows the total value in dollars) that Andrew gets from playing 9-hole rounds of golf. TABLE 6-3 -Refer to Table 6-3. If the price of a 9-hole round of golf is $22, and Andrew is maximizing his utility, then his consumer surplus will be

In which of the following situations will an individualʹs purchasing power be unaffected?

FIGURE 6-2 -Laurie spends all of her money buying bread and cheese. The marginal utility she receives from the last loaf of bread is 60 and from the last block of cheese is 30. The price of bread is $3 and the price of cheese is $2. Laurie

An equal proportional increase in money income and all money prices will

Assume you are consuming two goods, X and Y. Suppose that the money prices for X and Y remain unchanged, but your income increases by 20%. What happens to your consumption of good X?

The table below shows the total value in dollars) that Andrew gets from playing 9-hole rounds of golf. TABLE 6-3 -The paradox in ʺthe paradox of valueʺ refers to the

FIGURE 6-1 -Refer to Figure 6-1. The total utility from consuming two units of the good is

FIGURE 6-4 -Refer to Figure 6-4. For both goods, the price falls from P0 to P1. The substitution effect is illustrated by the change in quantity demanded from A to B; the income effect is illustrated by the change in quantity demanded from B to C. Good X is certainly an) good.

If total utility from the consumption of some product is decreasing as more units are consumed, then marginal utility must be

The table below shows output, marginal cost, and average variable cost for the production of pairs of shoes. All costs are in dollars. TABLE 7-6 -In economics, the term ʺutilityʺ is defined as the

Sophie consumes two goods paperback novels and visits to the movies. FIGURE 6-12 -Refer to Figure 6-12. Sophieʹs movement from point A to point B is the

Indifference theory is based on the assumption that

A parallel shift in the consumerʹs budget line must indicate a change in

Marginal utility theory is about

FIGURE 6-1 -Refer to Figure 6-1. The consumerʹs total utility is