Exam 8: Utility and Demand

Use the table below to answer the following question. Table 8.2.4 -Refer to Table 8.2.4.Suppose the price of X is $1 and the price of Y is $1.How much of each should you purchase to maximize utility from a total expenditure of $11?

Gene plays another hour of computer games rather than study for the hour even though he knows that the next day when he takes his test he will regret his decision.Gene is showing

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. -Devon enjoys windsurfing and snorkeling.His total utility from each activity is summarized in Table 8.2.1.Devon has $35 to spend.How long will Devon choose to windsurf and to snorkel?

The value of a good relates to

According to a behavioural economist,a person who is unwilling to sell the last kilogram of rice he purchased for the same price that he paid for it is displaying

Use the table below to answer the following questions. Table 8.2.3 -Refer to Table 8.2.3.If income is $13,then utility is maximized when consumption is

Let MUA and MUB stand for the marginal utility of goods A and B,respectively.Let PA and PB stand for the price of goods A and B,respectively.Which statement must hold for consumer equilibrium?

Sam buys gasoline and coffee each week.To draw his budget line for gasoline and coffee,Sam needs to know

Suppose a consumer spends all his income.His marginal utility per dollar on X is 4 and marginal utility per dollar on Y is 2.We know that

A behavioural economist will explain Tom's donation to charity by saying that Tom is displaying

Max has $35 a day to spend,and he can spend as much time as he likes on his leisure pursuits.Windsurfing equipment rents for $10 an hour,and snorkeling equipment rents for $5 an hour.If Max equalizes the marginal utility per hour from windsurfing and from snorkeling,he

Which one of the following is not an assumption of marginal utility theory?

Which one of the following statements is true?

The budget line

If the price of a good rises,then in the new consumer equilibrium all of the following are true except

Childcare workers often get paid fairly low wages,yet it is said that they have "the most important job in the world." This paradox can be resolved by

John and Sally have identical preferences except Sally's utility units are exactly 10 times that of John's.Both have the same income and face the same prices.Choose the best response.

What is marginal utility?

Ron starts out in consumer equilibrium,consuming two goods,X and Y.The price of X rises.Immediately after the rise in price

Total utility is always