The following table shows Pierre's utility for bagels and cider. \[\begin{array} { c r r } \text { Quantity } & \begin{array} { r } \text { Bagels: } \\ \text { Cider: } \end{array} \\ 1 & \text { Marginal Utility } & \text { Marginal Utility } \\ 2 & 20 & 20 \\ 3 & 10 & 16 \\ 4 & 8 & 12 \\ 5 & 3 & 9 \\ 5 & 1 & 4 \end{array}\] -Refer to the above information to answer this question. If Pierre has a budget of $12 and the price of both bagels and cider are $2, what will be his optimal purchase?

A) 1 bagel and 5 ciders. B) 2 bagels and 4 ciders. C) 3 bagels and 3 ciders. D) 4 bagels and 2 ciders. E) 5 bagels and 1 ciders. A) 1 bagel and 5 ciders. B) 2 bagels and 4 ciders. C) 3 bagels and 3 ciders. D) 4 bagels and 2 ciders. E) 5 bagels and 1 ciders.

The following table shows Mia's $ marginal utility for litres of soya milk: \[\begin{array} { c r } \begin{array} { c } \text { Quantity } \\ \text { (in litres) } \end{array} & \text { \$MU } \\ 1 & \$ 15 \\ 2 & 10 \\ 3 & 8 \\ 4 & 2 \\ 5 & 1 \\ 6 & 0.50 \\ 7 & 0 \end{array}\] -If the price of soya milk is $8 per litre, what is the maximum number of litres that Mia will buy?

A) 0. B) 1. C) 2. D) 3. E) 7. A) 0. B) 1. C) 2. D) 3. E) 7.

The following table shows Pierre's utility for bagels and cider. \[\begin{array} { c r r } \text { Quantity } & \begin{array} { r } \text { Bagels: } \\ \text { Cider: } \end{array} \\ 1 & \text { Marginal Utility } & \text { Marginal Utility } \\ 2 & 20 & 20 \\ 3 & 10 & 16 \\ 4 & 8 & 12 \\ 5 & 3 & 9 \\ 5 & 1 & 4 \end{array}\] -Refer to the above information to answer this question. If Pierre has a budget of $12, the price of bagels is $1 and cider is $2, what will be the total utility of his optimal purchase?

A) 12 utils. B) 41 utils. C) 50 utils. D) 57 utils. E) 98 utils. A) 12 utils. B) 41 utils. C) 50 utils. D) 57 utils. E) 98 utils.

$\begin{array}{c} \begin{array}{c} \text {Quantity}\\ \text {Consumed}\\ 1 \\ 2 \\ 3 \\ 4 \\ 5 \\ 6 \\ 7 \\ 8 \end{array} \begin{array}{c} \text {Total}\\ \text {Utility}\\ \\ 98\\ 143\\ 183\\ \\ 241\\ \\ 254 \end{array} \begin{array}{c} \text {Marginal}\\ \text {Utility}\\ 50\\ \\ 45\\ \\ 33\\ \\ 15\\ \\ \end{array} \end{array}$ -Refer to the above information to answer this question. What is the total utility of 7 units?

A) 15. B) 25. C) 256. D) 271. E) Cannot be determined. A) 15. B) 25. C) 256. D) 271. E) Cannot be determined.

You have $5 to spend on any combination of goods A and B. Are you maximizing your utility? If so, explain why. If not, what combination of goods should you buy? B. The price of good A is $2 and the price of good B is $1. You have calculated the following utility values for yourself: \[\begin{array} { c c c c c c c } \hline \text { Units } & \mathbf { T U } _ { \mathbf { A } } & \mathbf { M U } _ { \mathbf { A } } & \mathbf { M U } _ { \mathbf { A } } \mathbf { P } _ { \mathbf { A } } & \mathbf { T U } _ { \mathbf { B } } & \mathbf { M U } _ { \mathbf { B } } & \mathbf { M U } _ { \mathbf { B } } / \mathbf { P } _ { \mathbf { B } } \\ \hline 0 & 0 & & & 0 & & \\ 1 & 16 & & & 30 & & \\ 2 & 30 & & & 50 & & \\ 3 & 40 & & & 58 & & \\ 4 & 46 & & & 64 & & \\ \hline \end{array}\] (a) Fill in the empty columns of the table. (b) You have purchased 2 units of good A and 1 unit of good

(a) The completed table: @#IMG-DLM& (b) If you pur

The following table shows Ketta's utility for eggs and bacon. \[\begin{array} { c r r } \text { Quantity } & \text { Eggs: } & \text { Bacon: } \\ & \text { Total Utility } & \text { Total Utility } \\ 1 & 10 & 12 \\ 2 & 18 & 21 \\ 3 & 24 & 28 \\ 4 & 28 & 33 \\ 5 & 30 & 36 \end{array}\] -Refer to the above information to answer this question. If Ketta has a budget of $5 and the price of both eggs and bacon are $1, what will be her optimal purchase?

A) 5 bacon. B) 1 egg and 4 bacon. C) 2 eggs and 3 bacon. D) 3 eggs and 2 bacon. E) 4 eggs and 1 bacon. A) 5 bacon. B) 1 egg and 4 bacon. C) 2 eggs and 3 bacon. D) 3 eggs and 2 bacon. E) 4 eggs and 1 bacon.

Exam 5: Consumer Choice

Table 5.5 shows the Brian's total utility from consuming peanut butter chocolate chip cookies. Table 5.5 Q TU 1 50 2 95 3 135 4 ??? 5 200 6 225 Which of the following are feasible amounts of the total utility of 4 units?

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Question 1

Correct Answer:

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a) 160 b) 170 c) 180
b) 170
c) The marginal utility of the 4^th unit must be less than the marginal utility of the 3^rd unit and greater than marginal utility of the 5^th unit. Since the marginal utility for the 5^th unit is 25 and the marginal utility for the 3^rd unit is 40, the total utility for the 4^th unit must be greater than 167 and less than 175.

Explain what is meant by the term consumer surplus.

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Question 2

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Consumer surplus is the difference between what a customer is willing to pay and the actual price of the product. In other words, it is the difference between the consumer's subjective evaluation of each unit of a product and the market's objective value (the price).

What is the correct expression for marginal utility?

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Question 3

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B

Which of the following is correct in reference to the law of diminishing marginal utility?

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Question 4

The following graph shows the marginal utility derived from milk and giant cookies purchased by Sandeep. -Refer to the above graph to answer this question. Which of the following combinations will give Sandeep the greatest total utility?

(Multiple Choice)

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Question 5

What is the correct expression for marginal utility?

(Multiple Choice)

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Question 6

The following table shows Pierre's utility for bagels and cider. Quantity Bagels: Cider: 1 Marginal Utility Marginal Utility 2 20 20 3 10 16 4 8 12 5 3 9 5 1 4 -Refer to the above information to answer this question. If Pierre has a budget of $12 and the price of both bagels and cider are $2, what will be his optimal purchase?

(Multiple Choice)

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Question 7

Yoko has $10 to spend on lunch. The deli doesn't have a very extensive menu: pears at $0.75 each; bagels at $1.50 each and cappuccino at $2 each. Given her utility figures in the table below, how should she allocate her $10? Pears Bagels Cappuccino Quantity Total Utility Total Utility Total Utility 1 80 200 270 2 145 350 480 3 200 470 630 4 240 560 735 5 260 610 825

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Question 8

The following table shows Mia's $ marginal utility for litres of soya milk: Quantity (in litres) \MU 1 \ 15 2 10 3 8 4 2 5 1 6 0.50 7 0 -If the price of soya milk is $8 per litre, what is the maximum number of litres that Mia will buy?

(Multiple Choice)

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Question 9

The following table shows Pierre's utility for bagels and cider. Quantity Bagels: Cider: 1 Marginal Utility Marginal Utility 2 20 20 3 10 16 4 8 12 5 3 9 5 1 4 -Refer to the above information to answer this question. If Pierre has a budget of $12, the price of bagels is $1 and cider is $2, what will be the total utility of his optimal purchase?

(Multiple Choice)

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Question 10

A new bakery has just opened, and in an attempt to attract awareness, it is offering free unlimited samples of its chocolate chip cookies. Assuming you can only consume the cookies in-store (you cannot take them home), how many pieces of cookie would you have?

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Question 11

Quantity Consumed 1 2 3 4 5 6 7 8 Total Utility 98 143 183 241 254 Marginal Utility 50 45 33 15 -Refer to the above information to answer this question. What is the total utility of 7 units?

(Multiple Choice)

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Question 12

The following graph shows the total utility obtained from rice crackers and beer by Carla. -Refer to the above graph to answer this question. If the price of rice crackers are $2, beer is $3, and Carla has a budget of $14, how much of each will she purchase if she wishes to maximize her total utility?

(Multiple Choice)

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Question 13

If total utility is falling, what is also true?

(Multiple Choice)

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Question 14

What is meant by the term margin?

(Multiple Choice)

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Question 15

-Which of the following products are likely to yield the greatest amount of consumer surplus?

(Multiple Choice)

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Question 16

You have $5 to spend on any combination of goods A and B. Are you maximizing your utility? If so, explain why. If not, what combination of goods should you buy? B. The price of good A is $2 and the price of good B is $1. You have calculated the following utility values for yourself: Units / 0 0 0 1 16 30 2 30 50 3 40 58 4 46 64 (a) Fill in the empty columns of the table. (b) You have purchased 2 units of good A and 1 unit of good

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Question 17

-What does the diamond-water paradox refer to?

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Question 18

The following table shows Ketta's utility for eggs and bacon. Quantity Eggs: Bacon: Total Utility Total Utility 1 10 12 2 18 21 3 24 28 4 28 33 5 30 36 -Refer to the above information to answer this question. If Ketta has a budget of $5 and the price of both eggs and bacon are $1, what will be her optimal purchase?

(Multiple Choice)

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Question 19

-Refer to the graph above to answer this question. At what quantity would this consumer maximize her total utility?

(Multiple Choice)

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Question 20

Table 5.5 shows the Brian's total utility from consuming peanut butter chocolate chip cookies. Table 5.5 Q TU 1 50 2 95 3 135 4 ??? 5 200 6 225 Which of the following are feasible amounts of the total utility of 4 units?

Explain what is meant by the term consumer surplus.

What is the correct expression for marginal utility?

Which of the following is correct in reference to the law of diminishing marginal utility?

The following graph shows the marginal utility derived from milk and giant cookies purchased by Sandeep. -Refer to the above graph to answer this question. Which of the following combinations will give Sandeep the greatest total utility?

What is the correct expression for marginal utility?

The following table shows Mia's $ marginal utility for litres of soya milk: Quantity (in litres) \MU 1 \ 15 2 10 3 8 4 2 5 1 6 0.50 7 0 -If the price of soya milk is $8 per litre, what is the maximum number of litres that Mia will buy?

A new bakery has just opened, and in an attempt to attract awareness, it is offering free unlimited samples of its chocolate chip cookies. Assuming you can only consume the cookies in-store (you cannot take them home), how many pieces of cookie would you have?

Quantity Consumed 1 2 3 4 5 6 7 8 Total Utility 98 143 183 241 254 Marginal Utility 50 45 33 15 -Refer to the above information to answer this question. What is the total utility of 7 units?

If total utility is falling, what is also true?

What is meant by the term margin?

-Which of the following products are likely to yield the greatest amount of consumer surplus?

-What does the diamond-water paradox refer to?

-Refer to the graph above to answer this question. At what quantity would this consumer maximize her total utility?

The Economic Problem

Demand and Supply: an Introduction

Demand and Supply: an Elaboration

Elasticity

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters