Exam 12: Consumer Choices and Constraints

Larry spends all his $800 monthly income on pizza and milk. The price of pizza is $4 a slice, and the price of milk is $2 per litre. The relative price of milk is

(Multiple Choice)

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Question 81

All points below a given indifference curve are

(Multiple Choice)

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Question 82

A budget line shows the

(Multiple Choice)

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Question 83

A constant marginal rate of substitution between two goods implies that they are

(Multiple Choice)

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Question 84

Ernie has an income of $40 which he plans to spend on cookies and milk. The price of milk is $1 per litre, and the price of cookies is $2 per dozen. If Ernie buys 12 litres of milk, how many dozens of cookies will he buy if he spends all of his income?

(Multiple Choice)

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Question 85

Suppose the price of a good rises. The income effect

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Question 86

Samara's income is $30 a month and she spends all of it on music downloads and petrol. The price of a music download is $1.50 and the price of a litre of petrol is $3. At Samara's best affordable point, her marginal rate of substitution is _______ per litre of petrol.

(Multiple Choice)

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Question 87

Bob plans to spend $60 per month on DVD movie rentals and CDs. The price of a movie rental is $3 and the price of a CD is $15. If Bob rents 5 DVDs per month, how many CDs can he buy?

(Multiple Choice)

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Question 88

-In the figure above, the MRS at point A is _______ the MRS at point B.

(Multiple Choice)

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Question 89

-The figure above shows Tanya's consumption possibilities. Tanya spends $100 per month on movies and restaurant meals. The price of a movie ticket is _ and the price of a restaurant meal is _.

(Multiple Choice)

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Question 90

If green bikes and brown bikes are perfect substitutes, the corresponding indifference curves

(Multiple Choice)

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Question 91

The effect of a change in price on the quantity bought when the consumer remains indifferent between the original and the new situation is called the

(Multiple Choice)

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Question 92

The marginal rate of substitution is

(Multiple Choice)

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Question 93

If Sue is consuming two normal goods and her income decreases, then her best affordable bundle of goods will contain _ goods with _ marginal rate of substitution as her bundle prior to her income change.

(Multiple Choice)

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Question 94

-In the above figure, what is the magnitude of the marginal rate of substitution (MRS) at point a?

(Multiple Choice)

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Question 95

-In the above figure, income is $8, the price of a soft drink is $1, and the initial price of a milkshake is $2) If the price of a milkshake decreases to $1, the substitution effect is the movement from point _ to point _.

(Multiple Choice)

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Question 96

-Consider the budget line in the above figure. If the consumer has income of $240, what is the relative price of movies?

(Multiple Choice)

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Question 97

-Consider the budget line in the above figure. If the consumer's income is $120, then the price of a movie is

(Multiple Choice)

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Question 98

Suppose the price of coffee is $3, the price of a bagel is $2 and a person's budget is $40. The budget line's equation is

(Multiple Choice)

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Question 99

-Consider the indifference maps shown above. If X and Y are perfect substitutes, your indifference curves between them would look like those in

(Multiple Choice)

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Question 100

Showing 81 - 100 of 150

Larry spends all his $800 monthly income on pizza and milk. The price of pizza is $4 a slice, and the price of milk is $2 per litre. The relative price of milk is

All points below a given indifference curve are

A budget line shows the

A constant marginal rate of substitution between two goods implies that they are

Ernie has an income of $40 which he plans to spend on cookies and milk. The price of milk is $1 per litre, and the price of cookies is $2 per dozen. If Ernie buys 12 litres of milk, how many dozens of cookies will he buy if he spends all of his income?

Suppose the price of a good rises. The income effect

Samara's income is $30 a month and she spends all of it on music downloads and petrol. The price of a music download is $1.50 and the price of a litre of petrol is $3. At Samara's best affordable point, her marginal rate of substitution is _______ per litre of petrol.

Bob plans to spend $60 per month on DVD movie rentals and CDs. The price of a movie rental is $3 and the price of a CD is $15. If Bob rents 5 DVDs per month, how many CDs can he buy?

-In the figure above, the MRS at point A is _______ the MRS at point B.

-The figure above shows Tanya's consumption possibilities. Tanya spends $100 per month on movies and restaurant meals. The price of a movie ticket is _ and the price of a restaurant meal is _.

If green bikes and brown bikes are perfect substitutes, the corresponding indifference curves

The effect of a change in price on the quantity bought when the consumer remains indifferent between the original and the new situation is called the

The marginal rate of substitution is

If Sue is consuming two normal goods and her income decreases, then her best affordable bundle of goods will contain _ goods with _ marginal rate of substitution as her bundle prior to her income change.

-In the above figure, what is the magnitude of the marginal rate of substitution (MRS) at point a?

-In the above figure, income is $8, the price of a soft drink is $1, and the initial price of a milkshake is $2) If the price of a milkshake decreases to $1, the substitution effect is the movement from point _ to point _.

-Consider the budget line in the above figure. If the consumer has income of $240, what is the relative price of movies?

-Consider the budget line in the above figure. If the consumer's income is $120, then the price of a movie is

Suppose the price of coffee is $3, the price of a bagel is $2 and a person's budget is $40. The budget line's equation is

-Consider the indifference maps shown above. If X and Y are perfect substitutes, your indifference curves between them would look like those in

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Public Choices and Public Goods

Economics of the Environment

Monopoly and Its Regulation

Economic Inequality

Producer Choices and Constraints

Perfect Competition

Monopolistic Competition

Oligopoly Games and Strategy

Decisions in Factor Markets

Filters

Exam 12: Consumer Choices and Constraints

Larry spends all his $800 monthly income on pizza and milk. The price of pizza is $4 a slice, and the price of milk is $2 per litre. The relative price of milk is

All points below a given indifference curve are

A budget line shows the

A constant marginal rate of substitution between two goods implies that they are

Ernie has an income of $40 which he plans to spend on cookies and milk. The price of milk is $1 per litre, and the price of cookies is $2 per dozen. If Ernie buys 12 litres of milk, how many dozens of cookies will he buy if he spends all of his income?

Suppose the price of a good rises. The income effect

Samara's income is $30 a month and she spends all of it on music downloads and petrol. The price of a music download is $1.50 and the price of a litre of petrol is $3. At Samara's best affordable point, her marginal rate of substitution is _______ per litre of petrol.

Bob plans to spend $60 per month on DVD movie rentals and CDs. The price of a movie rental is $3 and the price of a CD is $15. If Bob rents 5 DVDs per month, how many CDs can he buy?

-In the figure above, the MRS at point A is _______ the MRS at point B.

-The figure above shows Tanya's consumption possibilities. Tanya spends $100 per month on movies and restaurant meals. The price of a movie ticket is _______ and the price of a restaurant meal is _______.

If green bikes and brown bikes are perfect substitutes, the corresponding indifference curves

The effect of a change in price on the quantity bought when the consumer remains indifferent between the original and the new situation is called the

The marginal rate of substitution is

If Sue is consuming two normal goods and her income decreases, then her best affordable bundle of goods will contain _______ goods with _______ marginal rate of substitution as her bundle prior to her income change.

-In the above figure, what is the magnitude of the marginal rate of substitution (MRS) at point a?

-In the above figure, income is $8, the price of a soft drink is $1, and the initial price of a milkshake is $2) If the price of a milkshake decreases to $1, the substitution effect is the movement from point _______ to point _______.

-Consider the budget line in the above figure. If the consumer has income of $240, what is the relative price of movies?

-Consider the budget line in the above figure. If the consumer's income is $120, then the price of a movie is

Suppose the price of coffee is $3, the price of a bagel is $2 and a person's budget is $40. The budget line's equation is

-Consider the indifference maps shown above. If X and Y are perfect substitutes, your indifference curves between them would look like those in

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Public Choices and Public Goods

Economics of the Environment

Monopoly and Its Regulation

Economic Inequality

Producer Choices and Constraints

Perfect Competition

Monopolistic Competition

Oligopoly Games and Strategy

Decisions in Factor Markets

Filters

-The figure above shows Tanya's consumption possibilities. Tanya spends $100 per month on movies and restaurant meals. The price of a movie ticket is _ and the price of a restaurant meal is _.

If Sue is consuming two normal goods and her income decreases, then her best affordable bundle of goods will contain _ goods with _ marginal rate of substitution as her bundle prior to her income change.

-In the above figure, income is $8, the price of a soft drink is $1, and the initial price of a milkshake is $2) If the price of a milkshake decreases to $1, the substitution effect is the movement from point _ to point _.