Exam 7: Utility Maximization

The table shows the total utility data for products X and Y. Assume that the prices of X and Y are $3 and $4, respectively, and that consumer income is $18. If the price of X decreases from $3 to $2, while the price of Y and the consumer's income stay the same, then the utility-maximizing combination is such that the quantity of X

If consumers are convinced by ads that Brand X has a lot more value than they originally thought, then the MU/P of X will decrease.

To derive the demand curve of a product in indifference curve analysis, the

When DVD players start becoming obsolete then, to potential thieves, the

As a consumer moves from one point to another along an indifference curve, which of the following is assumed to stay constant?

The table shows an indifference schedule for several combinations of X and Y. How much of X is the consumer willing to give up to obtain the second unit of Y?

An increase in the price of product X causes a decrease in the quantity demanded for product X. One basic explanation for this is

Mrs. Arnold is spending all her money income by buying bottles of soda and bags of pretzels in such amounts that the marginal utility of the last bottle is 60 utils and the marginal utility of the last bag is 30 utils. The prices of soda and pretzels are $0.6 per bottle and $0.4 per bag, respectively. It can be concluded that

Refer to the table. What is the marginal utility of the fourth unit?

The individual demand curve that is implied by the budget constraints and indifference curves above will be

The budget line shows all the combinations of two products that the consumer can buy, given money income and product prices.

What is shown by the budget line in a two-product (A andB)case? Describe what happens when there is a change in income or the price of a product.

Suppose you have money income of $10, all of which you spend on Coke and popcorn. In the diagram, the prices of Coke and popcorn, respectively, are

Noncash gift-giving involves value loss when the marginal utility of the gift to the receiver is less than the product price.

A child is given $4.00 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table. Which combination would give the child the maximum utility out of spending $4?

If money income increases and the prices of products A and B both increase, then the budget line

Given the indifference map and budget constraint lines above, what is the demand curve for sweaters?

Suppose a consumer has an income of $24, the price of A is $3, and the price of B is $1. Which of the following combinations is on the consumer's budget line?

The table shows a consumer's utility schedule. Based on the data in the table, you can conclude that the

The table shows the total utility data for products X and Y. Assume that the prices of X and Y are $2 and $4, respectively, and that consumer income is $18. How many units of the two products will the consumer buy to get maximum utility?