Exam 7: Utility Maximization

Refer to the table and graph. Suppose that the price of X falls from $2 to $1, while the price of Y remains at $4. Which of the following represents the demand curve for X if the consumer has money income of $10 to spend on X and Y?

A graph that shows the maximum combinations of two goods which a consumer can purchase with a given money income is

Frank is purchasing products C and D in utility-maximizing amounts. If the price of C is $4 and the price of D is $2, then

If the total utility from consuming five units of a product is 245 and the marginal utility of a sixth unit is 5, then the total utility from consuming six units would be

Most people do not steal, because

In spending all his income on beer and pizza, Fred finds that the marginal utility of the last pizza he consumed is 8, and the marginal utility of the last bottle of beer is 4. The price of a bottle of beer is $1.50. If Fred has maximized his utility, the price of pizza must be

Refer to the data. The value for Z is

Refer to the diagram. The equilibrium points shown in the diagram, along with the price change that produced the shift of the budget line from ab to ac,

A budget line shows the

How did Apple overcome consumers' diminishing marginal utility for iPads?

Why are indifference curves downsloping?

Assume the price of product Y (the quantity of which is plotted on the vertical axis)is initially $15 and the price of X (the quantity of which is plotted on the horizontal axis)is initially $3. Assume money income is initially $60. If the prices of Y and X now increase to $30 and $6, respectively, and money income increases to $120, then the budget line will

If a consumer is initially in equilibrium, an increase in money income will

The table shows an indifference schedule for several combinations of X and Y. In moving from combination a to b, the consumer

Refer to the diagram. Total utility

Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility)that a consumer would get from successive quantities of products J and K. What level of total utility is realized from the equilibrium combination of J and K, if the consumer has a money income of $26 and the prices of J and K are $8 and $2, respectively?

Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $4, and the price of product Y is $2. The income of the consumer is $20. If the consumer buys product X or product Y one unit at a time, which of the following will the consumer's first two purchases be?

Refer to the diagram. Marginal utility

Frank is purchasing products C and D in utility-maximizing amounts. If the price of C is $6 and the price of D is $3, then

Use marginal-utility analysis to explain the growing popularity of iPads and other tablets over laptops and desktop computers.