Mr. Inflexible's utility function is U(x1,x2)= min(x1,x2). The price of x1 is $1, the price of x2 is $2, and Mr. Inflexible's budget is $120. If an excise tax of $1 per unit is placed on x1, the utility maximizing bundle is:

A) (40, 20). B) (50, 25). C) (30, 30). D) (20, 40). A) (40, 20). B) (50, 25). C) (30, 30). D) (20, 40).

Exam 3: Demand Theory

Joseph's utility function is given by x_A+ 2x_B, where x_Adenotes his consumption of apples and x_B his consumption of bananas. If a banana cost 50 cents and an apple costs also 50 cents, how many apples will he buy if his income is $10?

(Multiple Choice)

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Question 41

Which of the following assumptions about consumer behaviour implies that the utility maximizing choice will be on the budget constraint.

(Multiple Choice)

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Question 42

A price consumption path is derived by:

(Multiple Choice)

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Question 43

Own price elasticity of demand is defined as:

(Multiple Choice)

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Question 44

Mr. Inflexible's utility function is U(x₁,x₂)= min(x₁,x₂). The price of x₁is $2 including a $1 excise tax, the price of x₂is $2, and Mr. Inflexible's budget is $120. Imagine substituting a lump- sum tax for the excise tax. If both taxes raise the same amount of tax revenue, the lump- sum tax is:

(Multiple Choice)

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Question 45

Elasticity is an attractive measure of comparative static responses for all of the following reasons except, elasticities:

(Multiple Choice)

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Question 46

The price of x is $1 and the price of y is $2. An individual with a fixed money income consumes 10 units of each in equilibrium. Suppose the price of x increases to $2 and the price of y increases to $3 while her money income increases to $50. Will her consumption of y fall?

(Essay)

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Question 47

Hamburger University is losing $4 million dollars per year. The trustees of the university want to increase fees to cover the deficit. The president of the student body wants to decrease fees to cover the deficit. On the basis of this information, which of the following is true?

(Multiple Choice)

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Question 48

If Mary always spends 10% of her income on records, regardless of the prices of records or other goods, then:

(Multiple Choice)

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Question 49

Fred's demand for beer is given by x = M/2p_x. For Fred, beer is a(n):

(Multiple Choice)

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Question 50

Imagine an excise tax and a lump- sum tax which would raise the same revenue from an individual Ms. Arbitrary who has convex preferences. If she was given a choice between the two taxes, then:

(Multiple Choice)

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Question 51

Joe consumes just two goods, x₁and x₂and both are inessential. His indifference curves are convex. Joe will buy a positive quantity of x₁if:

(Multiple Choice)

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Question 52

Mr. Inflexible's utility function is U(x₁,x₂)= min(x₁,x₂). The price of x₁is $1, the price of x₂is $2, and Mr. Inflexible's budget is $120. If an excise tax of $1 per unit is placed on x₁, the utility maximizing bundle is:

(Multiple Choice)

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Question 53

Mr. Inflexible's utility function is U(x₁,x₂)= min(x₁,x₂). The price of x₁is $2 including a $1 excise tax, the price of x₂is $2, and Mr. Inflexible's budget is $120. Imagine substituting a lump- sum tax for the excise tax. If both taxes leave Mr. Inflexible on the same indifference curve, then the Lump- sum tax is:

(Multiple Choice)

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Question 54

Ron's utility function is given by U(x,y)= min[2x,y]. If the price of x is 1 and the price of y is 1, Ron spends his $12 income on:

(Multiple Choice)

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Question 55

According to the text, the income elasticity for cigarettes has been estimated at between - 0.23 and - 0.55. What happens to total consumer spending on cigarettes as the tax on tobacco products increases?

(Essay)

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Question 56

In January a severe frost destroyed 1/3 of the American orange crop, and growers anticipated bankruptcy. By year's end, however, they realized that their profits were larger than ever. Which of the following could not explain this curious result?

(Multiple Choice)

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Question 57

Joseph's utility function is given by x_A+ 2x_B, where x_Adenotes his consumption of apples and x_B his consumption of bananas. Suppose apples and bananas have the same price, 50 cents. If his income is $10, then Joseph will consume:

(Multiple Choice)

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Question 58

Suppose an individual's income is the same before and after an excise tax is imposed on good 1 and the demand for good 1 is elastic. Will the excise tax lead to an increase in spending on other consumer goods?

(Essay)

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Question 59

Income elasticity of demand for an inferior good is:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 93

Joseph's utility function is given by x_A+ 2x_B, where x_Adenotes his consumption of apples and x_B his consumption of bananas. If a banana cost 50 cents and an apple costs also 50 cents, how many apples will he buy if his income is $10?

Which of the following assumptions about consumer behaviour implies that the utility maximizing choice will be on the budget constraint.

A price consumption path is derived by:

Own price elasticity of demand is defined as:

Elasticity is an attractive measure of comparative static responses for all of the following reasons except, elasticities:

The price of x is $1 and the price of y is $2. An individual with a fixed money income consumes 10 units of each in equilibrium. Suppose the price of x increases to $2 and the price of y increases to $3 while her money income increases to $50. Will her consumption of y fall?

Hamburger University is losing $4 million dollars per year. The trustees of the university want to increase fees to cover the deficit. The president of the student body wants to decrease fees to cover the deficit. On the basis of this information, which of the following is true?

If Mary always spends 10% of her income on records, regardless of the prices of records or other goods, then:

Fred's demand for beer is given by x = M/2p_x. For Fred, beer is a(n):

Imagine an excise tax and a lump- sum tax which would raise the same revenue from an individual Ms. Arbitrary who has convex preferences. If she was given a choice between the two taxes, then:

Joe consumes just two goods, x₁and x₂and both are inessential. His indifference curves are convex. Joe will buy a positive quantity of x₁if:

Mr. Inflexible's utility function is U(x₁,x₂)= min(x₁,x₂). The price of x₁is $1, the price of x₂is $2, and Mr. Inflexible's budget is $120. If an excise tax of $1 per unit is placed on x₁, the utility maximizing bundle is:

Ron's utility function is given by U(x,y)= min[2x,y]. If the price of x is 1 and the price of y is 1, Ron spends his $12 income on:

According to the text, the income elasticity for cigarettes has been estimated at between - 0.23 and - 0.55. What happens to total consumer spending on cigarettes as the tax on tobacco products increases?

In January a severe frost destroyed 1/3 of the American orange crop, and growers anticipated bankruptcy. By year's end, however, they realized that their profits were larger than ever. Which of the following could not explain this curious result?

Joseph's utility function is given by x_A+ 2x_B, where x_Adenotes his consumption of apples and x_B his consumption of bananas. Suppose apples and bananas have the same price, 50 cents. If his income is $10, then Joseph will consume:

Suppose an individual's income is the same before and after an excise tax is imposed on good 1 and the demand for good 1 is elastic. Will the excise tax lead to an increase in spending on other consumer goods?

Income elasticity of demand for an inferior good is:

Microeconomics: a Working Methodology

A Theory of Preferences

More Demand Theory

Intertemporal Decision Making and Capital Values

Production Cost: One Variable Input

Production Cost: Many Variable Inputs

The Theory of Perfect Competition

Applications of the Competitive Model

Monopoly

Input Markets and the Allocation of Resources

Labour Market Applications

Competitive General Equilibrium

Price Discrimination Monopoly Practices

Introduction to Game Theory

Game Theory and Oligopoly

Choice Making Under Uncertainty

Assymmetric Information, the Rules of the Game, and Externalities

The Theory of the Firm

Assymetric Information and Market Behaviour

Filters

Exam 3: Demand Theory

Joseph's utility function is given by xA + 2xB, where xA denotes his consumption of apples and xB his consumption of bananas. If a banana cost 50 cents and an apple costs also 50 cents, how many apples will he buy if his income is $10?

Which of the following assumptions about consumer behaviour implies that the utility maximizing choice will be on the budget constraint.

A price consumption path is derived by:

Own price elasticity of demand is defined as:

Mr. Inflexible's utility function is U(x1,x2)= min(x1,x2). The price of x1 is $2 including a $1 excise tax, the price of x2 is $2, and Mr. Inflexible's budget is $120. Imagine substituting a lump- sum tax for the excise tax. If both taxes raise the same amount of tax revenue, the lump- sum tax is:

Elasticity is an attractive measure of comparative static responses for all of the following reasons except, elasticities:

The price of x is $1 and the price of y is $2. An individual with a fixed money income consumes 10 units of each in equilibrium. Suppose the price of x increases to $2 and the price of y increases to $3 while her money income increases to $50. Will her consumption of y fall?

Hamburger University is losing $4 million dollars per year. The trustees of the university want to increase fees to cover the deficit. The president of the student body wants to decrease fees to cover the deficit. On the basis of this information, which of the following is true?

If Mary always spends 10% of her income on records, regardless of the prices of records or other goods, then:

Fred's demand for beer is given by x = M/2px. For Fred, beer is a(n):

Imagine an excise tax and a lump- sum tax which would raise the same revenue from an individual Ms. Arbitrary who has convex preferences. If she was given a choice between the two taxes, then:

Joe consumes just two goods, x1 and x2 and both are inessential. His indifference curves are convex. Joe will buy a positive quantity of x1 if:

Mr. Inflexible's utility function is U(x1,x2)= min(x1,x2). The price of x1 is $1, the price of x2 is $2, and Mr. Inflexible's budget is $120. If an excise tax of $1 per unit is placed on x1, the utility maximizing bundle is:

Ron's utility function is given by U(x,y)= min[2x,y]. If the price of x is 1 and the price of y is 1, Ron spends his $12 income on:

According to the text, the income elasticity for cigarettes has been estimated at between - 0.23 and - 0.55. What happens to total consumer spending on cigarettes as the tax on tobacco products increases?

In January a severe frost destroyed 1/3 of the American orange crop, and growers anticipated bankruptcy. By year's end, however, they realized that their profits were larger than ever. Which of the following could not explain this curious result?

Joseph's utility function is given by xA + 2xB, where xA denotes his consumption of apples and xB his consumption of bananas. Suppose apples and bananas have the same price, 50 cents. If his income is $10, then Joseph will consume:

Suppose an individual's income is the same before and after an excise tax is imposed on good 1 and the demand for good 1 is elastic. Will the excise tax lead to an increase in spending on other consumer goods?

Income elasticity of demand for an inferior good is:

Microeconomics: a Working Methodology

A Theory of Preferences

More Demand Theory

Intertemporal Decision Making and Capital Values

Production Cost: One Variable Input

Production Cost: Many Variable Inputs

The Theory of Perfect Competition

Applications of the Competitive Model

Monopoly

Input Markets and the Allocation of Resources

Labour Market Applications

Competitive General Equilibrium

Price Discrimination Monopoly Practices

Introduction to Game Theory

Game Theory and Oligopoly

Choice Making Under Uncertainty

Assymmetric Information, the Rules of the Game, and Externalities

The Theory of the Firm

Assymetric Information and Market Behaviour

Filters

Joseph's utility function is given by x_A+ 2x_B, where x_Adenotes his consumption of apples and x_B his consumption of bananas. If a banana cost 50 cents and an apple costs also 50 cents, how many apples will he buy if his income is $10?

Fred's demand for beer is given by x = M/2p_x. For Fred, beer is a(n):

Joe consumes just two goods, x₁and x₂and both are inessential. His indifference curves are convex. Joe will buy a positive quantity of x₁if:

Mr. Inflexible's utility function is U(x₁,x₂)= min(x₁,x₂). The price of x₁is $1, the price of x₂is $2, and Mr. Inflexible's budget is $120. If an excise tax of $1 per unit is placed on x₁, the utility maximizing bundle is:

Joseph's utility function is given by x_A+ 2x_B, where x_Adenotes his consumption of apples and x_B his consumption of bananas. Suppose apples and bananas have the same price, 50 cents. If his income is $10, then Joseph will consume: