Exam 6: Consumer Behaviour

If total utility from the consumption of some product is decreasing as more units are consumed,then marginal utility must be

Diagrams A,B,and C show 3 individual consumers' demand curves for cement.Consumers A,B,and C constitute the entire monthly cement market in this region. FIGURE 6-3 -Refer to Figure 6-3.What is the market demand (in cubic metres per month)for cement at a price of $20 per cubic metre?

Dave's Consumer Surplus on Movie Rentals per Week (yes,we know no one rents movies anymore,but it makes a good example!) TABLE 6-2 -Refer to Table 6-2.How many movies will Dave rent per week such that the consumer surplus on the last unit is zero?

Suppose a consumer can purchase only two goods,beef and chicken.If the price of beef falls (with all other variables held constant),and the consumption of chicken increases,we can conclude that the increased consumption of chicken is due to

The Smith family is allocating its monthly household expenditure between only two goods,food and clothing.Suppose that the price of food is $12 per unit,and the price of clothing is $16 per unit and that the marginal utility that the family is receiving from its consumption of clothing is currently 200.What is the family's marginal utility from its consumption of food if it is maximizing its utility?

Assume a person reveals the following demand conditions.At a price of $10,quantity demanded is zero; and at a price of $1,quantity demanded is 10 units.

Sophie consumes two goods - paperback novels and visits to the movies. FIGURE 6-12 -Refer to Figure 6-12.Sophie's movement from point A to point C is

FIGURE 6-2 -Refer to Figure 6-2.If the price of X is $2 and the price of Y is $1 and the consumer is buying 4 units of X and 2 units of Y,the consumer's total utility is

FIGURE 6-1 -Refer to Figure 6-1.Marginal utility is zero when total utility is

An equal proportional increase in money income and all money prices will

The condition required for a consumer to be maximizing utility,for any pair of products,X and Y,is

Consumer surplus is

Consider a consumer who divides his income between spending on good X and good Y.The opportunity cost of good X in terms of good Y is reflected by the

The figures below show Chris's consumption of specialty coffee per week. FIGURE 6-10 -Refer to Figure 6-10.The slope of the budget line reflects the ________ of specialty coffees in terms of all other goods.

Suppose a consumer can purchase only two goods,pasta and cheese.Let the quantity of pasta be measured on the vertical axis and the quantity of cheese be measured on the horizontal axis.If the price of pasta falls,with no change in the price of cheese or in the consumer's money income,then the budget line for the consumer will rotate

FIGURE 6-9 -Refer to Figure 6-9.In part (ii),the consumer's move from point X to point Z is caused by

Laurie spends all of her money buying bread and cheese.The marginal utility she receives from the last loaf of bread is 60 and from the last block of cheese is 30.The price of bread is $3 and the price of cheese is $2.Laurie

The paradox in "the paradox of value" refers to the

FIGURE 6-5 -Refer to Figure 6-5.For both goods,the price increases from P₀ to P₁.The substitution effect is illustrated by the change in quantity demanded from A to B; the income effect is illustrated by the change in quantity demanded from B to C.Good X is certainly a(n)________ good.

The diagram below shows a set of budget lines facing a household. FIGURE 6-8 -Refer to Figure 6-8.The movement of the budget line from ab to ac could be caused by