A) shows the relation between prices and a consumer's utility. B) shows the relation between income and a consumer's utility. C) shows the relation between the amount of goods consumed and a consumer's utility. D) all of the above E) none of the above A) shows the relation between prices and a consumer's utility. B) shows the relation between income and a consumer's utility. C) shows the relation between the amount of goods consumed and a consumer's utility. D) all of the above E) none of the above

For the questions , assume James purchases only two goods, steak and chicken, with his weekly income of $60. The price of steak is $10 and the price of chicken is $5. The following table shows the marginal utility James obtains from each additional pound of steak and chicken: \[\begin{array} { l ccc} \text { Quantity } & \begin{array} { l } \text { Marginal utility of } \\ \text { steak } \end{array} & \begin{array} { c } \text { Marginal utility of } \\ \text { chicken } \end{array} & \\ \hline 1 & 70 & 50 \\ 2 & 60 & 40 & \\ 3 & 50 & 30 & \\ 4 & 40 & 20 & \\ 5 & 32 & 10 & \end{array}\] -If the price of steak falls to $8, what quantities of steak and chicken should James purchase to maximize his utility?

A) 6 steak, 2 chicken B) 5 steak, 3 chicken C) 4 steak, 4 chicken D) 5 steak, 4 chicken E) 3 steak, 6 chicken A) 6 steak, 2 chicken B) 5 steak, 3 chicken C) 4 steak, 4 chicken D) 5 steak, 4 chicken E) 3 steak, 6 chicken

A) is the horizontal summation of the individual demand curves. B) slopes downward. C) shows how market purchases vary with price. D) both a and b E) all of the above A) is the horizontal summation of the individual demand curves. B) slopes downward. C) shows how market purchases vary with price. D) both a and b E) all of the above

For questions assume that an individual consumes two goods X and Y. The total utility (assumed measurable) of each good is independent of the rate of consumption of other goods. The prices of X and Y are, respectively, $5 and $10. $\begin{array}{lcc} \text { Units of the Good } & \text { TotalUtility of } X & \text { Total Utility of } Y \\ 1 & 50 & 400 \\ 2 & 95 & 750 \\ 3 & 135 & 950 \\ 4 & 170 & 1100 \\ 5 & 200 & 1220 \\ 6 & 225 & 1320 \\ 7 & 245 & 1400 \\ 8 & 260 & 1450 \end{array}$ -If the consumer buys the third unit of Y,

A) the marginal utility of the third unit is 950 units of satisfaction. B) the marginal utility per dollar spent on Y is 200. C) the marginal utility per dollar spent on Y is 20. D) both a and B A) the marginal utility of the third unit is 950 units of satisfaction. B) the marginal utility per dollar spent on Y is 200. C) the marginal utility per dollar spent on Y is 20. D) both a and B

A) the marginal rate of substitution of X for Y is greater than it is at point B. B) the ratio of the price of X to the price of Y is greater than it is at point B. C) the consumer's utility is less than it is at point B. D) both a and c E) all of the above A) the marginal rate of substitution of X for Y is greater than it is at point B. B) the ratio of the price of X to the price of Y is greater than it is at point B. C) the consumer's utility is less than it is at point B. D) both a and c E) all of the above