Exam 8: Utility and Demand

The first can of Coke gives 15 units of utility to Witney, while the second can of Coke increases her total utility to 23.What is the marginal utility of the second can of Coke?

Use the table below to answer the following questions. Windsurfing equipment rents for $10 per hour and snorkeling equipment rents for $5 per hour. Table 8.2.1 -Devon enjoys windsurfing and snorkeling.His total utility from each activity is summarized in Table 8.2.1.Devon has $35 to spend.How long will Devon choose to windsurf and to snorkel?

Suppose you are consuming hot dogs and Cokes and believe you are receiving maximum total utility from the meal for your entire budget of $12.The price of a hot dog is $2 and the price of a Coke is $2.Which one of the following can you conclude?

Use the table below to answer the following questions. Table 8.2.2 -Refer to Table 8.2.2.What is the total utility if 3 bags of popcorn and 2 bottles of pop are consumed?

To determine consumer equilibrium we need to know only

In consumer equilibrium, a consumer equates the

Use the table below to answer the following questions. Windsurfing equipment rents for $10 per hour and snorkeling equipment rents for $5 per hour. Table 8.2.1 -Consider Devon's total utility from snorkeling and windsurfing in Table 8.2.1.Suppose Devon's total income is $35.If the price of windsurfing rises to $20 per hour, how long does Devon choose to windsurf and to snorkel?

Total utility equals

Sam buys gasoline and coffee each week.To draw his budget line for gasoline and coffee, Sam needs to know

The value of a good relates to

If the price of a good falls, then in the new consumer equilibrium

Martha and Sarah have the same preferences, face the same prices, and have the same income.Sarah's utility is measured in units while Martha's is measured in units squared.Select the best response.

The marginal utility per dollar from pizza is greater than the marginal utility per dollar from pop.To maximize utility, a consumer buys

Use the information below to answer the following questions. Fact 8.4.1 Eating Away the Innings in Baseball's Cheap Seats Baseball and gluttony, two of America's favourite pastimes, are merging with Major League Baseball stadiums offering all-you-can-eat seats. Some fans try to "set personal records" during their first game, but by the third time in such seats they eat normally. Source: USA Today, March 6, 2008 -Refer to Fact 8.4.1.Setting personal records for eating can be reconciled with marginal utility theory

Max has $35 a day to spend, and he can spend as much time as he likes on his leisure pursuits.Windsurfing equipment rents for $10 an hour, and snorkeling equipment rents for $5 an hour.If Max equalizes the marginal utility per hour from windsurfing and from snorkeling, he

According to a behavioural economist, a person who is unwilling to sell the last kilogram of rice he purchased for the same price that he paid for it is displaying

When total utility is increasing, marginal utility

Which of the following barriers to rational choices are studied by behavioural economics?

Sergio is maximizing utility in his consumption of beer and bubble gum.If the price of beer is greater than the price of bubble gum, then we know

Billy Jean loves to read and she has decided that she will buy all of her books at the bookstore at the outlet mall.One day she is in Chapters and sees a book from the Globe and Mail Best Sellers list that she wants to read and she decides to buy it. Buying the book means that she will not be able to take her Mom out for coffee this week.Billy Jean's decision is an example of