Exam 8: Utility and Demand

Harold can consume either pens or milkshakes.The price of a pen is $1,and the price of a milkshake is $1.Harold figures that when his income is spent,his marginal utility from pens will be 10 and his marginal utility from milkshakes will be 8.Harold is better off

When total utility is increasing,marginal utility

Use the table below to answer the following questions. Table 8.2.1 Windsurfing equipment rents for $10 per hour, snorkeling equipment for $5 per hour. -Consider Devon's total utility from snorkeling and windsurfing in Table 8.2.1.Suppose Devon's total income is $35.If the price of windsurfing rises to $20 per hour,how long does Devon choose to windsurf and to snorkel?

In consumer equilibrium,a consumer equates the

Advise Sarah how to maximize her utility if MUA??,MUB???,PA?? and PB??.

If the price of a good falls,then in the new consumer equilibrium

The first can of Coke gives 15 units of utility to Witney,while the second can of Coke increases her total utility to 23.What is the marginal utility of the second can of Coke?

Utility is similar to temperature because

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

Danny has $12 to spend on two goods: pies and pop.The price of a pie is $4,and the price of a can of pop is $2.To maximize his utility,Danny buys

Which of the following is not a prediction of marginal utility theory?

Use the table below to answer the following questions. Table 8.2.1 Windsurfing equipment rents for $10 per hour, snorkeling equipment for $5 per hour. -Consider Devon's total utility from snorkeling and windsurfing in Table 8.2.1.Suppose Devon's total income is $35.If the price of windsurfing rises to $20 per hour,what is Devon's cross elasticity of demand of snorkeling with respect to the price of windsurfing?

If Sean thinks that the choice between going to Olive Garden or Red Lobster is simply too confusing,a behavioural economist will explain that Sean is showing

Marginal utility equals

Shelley is maximizing utility in her consumption of mansions and Porsches.If the marginal utility of her last purchased mansion is twice the marginal utility of her last purchased Porsche,then we know

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 ________.

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

Use the table below to answer the following questions. Table 8.2.2 -Refer to Table 8.2.2.Henry is maximizing his utility by consuming 3 bags of popcorn and 3 bottles of pop.What is the ratio of the price of popcorn to the price of pop?

Bianca consumes pizza.Marginal utility theory predicts that when the price of pizza increases,

Lucy buys only magazines and CDs.Both are normal goods.Lucy's income decreases,but the prices of magazines and CDs do not change.Marginal utility theory predicts that