Exam 7: Consumer Behavior

Podrick enjoys consuming sandwiches (S) and juice boxes (J). Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses less than his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J). Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses more than his $20 budget?

Why is it inappropriate to compare the 120 utils that Joel gets from consumption to the 120 utils that Thomas gets from consumption?

Use the table Utility from Roller Coaster Rides I. What is the total utility from three roller coaster rides? ​

Fred buys more baseball tickets and more t-shirts when the price of baseball tickets decreases. What explains why Fred buys more t-shirts?

Samantha consumes peaches and herbs with her budget of $40. The price of peaches is $2.50, and the price of herbs is $10. She has spent her budget and is experiencing marginal utility from peaches of 10 utils and marginal utility from herbs of 30 utils. Should Samantha alter her spending to maximize utility? Explain.

The study of how economic decision making is influenced by the limits of the human mind is called _____ economics.

. Use the figure Aimee's Budget Constraint. Which point represents a point that is not affordable? ​ Figure: Aimee's Budget Constraint

. Use the figure Aimee's Budget Constraint. If Aimee has $100 to spend, what is the cost of a magazine based on this budget constraint? ​ Figure: Aimee's Budget Constraint

Economists generally assume that people act in their own interest, but the field of _____ economics examines the idea that those interests might not be what you expect and that sometimes consumers make mistakes.

. Use the figure Aimee's Budget Constraint. At which point would Aimee have money leftover? ​ Figure: Aimee's Budget Constraint

Teddy consumes coffee and chocolate with his budget of $30. The price of coffee is $2, and the price of chocolate is $3. He has spent his budget and is experiencing marginal utility from coffee of 10 utils and marginal utility from chocolate of 15 utils. Should Teddy alter his spending to maximize utility? Explain.

Podrick enjoys consuming sandwiches (S) and juice boxes (J). Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses more than his $20 budget?

Use the table Sorenson's Utility from Eating Lunches at a Restaurant. What is Sorenson's total utility from eating three lunches? ​

The strategy that gives you as much happiness as possible is:

Melanie is trying to eat a healthy diet and highly values this outcome. But when someone brings cheesecake to the office, she eats some. Which lesson from behavioral economics explains this behavior, which seems not to be in Melanie's best interest?

The combined utility that an individual receives from all the units consumed is known as _____ utility.

Gabriel has a budget of $100 and is currently buying 15 boxes of chocolates for $2 each and four bouquets of flowers for $10 each. His marginal utility of the 15th box of chocolate is 30 utils, and his marginal utility of the fourth bouquet of flowers is 45 utils. Which of the following explains why this is not an optimal consumption of chocolates and flowers?

Dee went to a Hawaiian restaurant, but after reading the twenty-page menu, she couldn't decide what to order and left. What concept from behavioral economics explains why she left?

The substitution effect leads to _____ in the quantity consumed of a good whose price decreased and _____ in the quantity of the good without a price change.