A) represents the set of all baskets the consumer can afford. B) represents the set of all baskets the consumer can afford while spending all available income. C) represents the set of all baskets that give the consumer the same level of utility while holding spending constant. D) represents the set of all baskets in which the consumer purchases only one of the goods. A) represents the set of all baskets the consumer can afford. B) represents the set of all baskets the consumer can afford while spending all available income. C) represents the set of all baskets that give the consumer the same level of utility while holding spending constant. D) represents the set of all baskets in which the consumer purchases only one of the goods. B

Exam 4: Consumer Choice

An agent consumes goods x and y,with prices P_x = $5 per unit and P_y = $8 per unit.The consumer's income is I = $48.The government imposes a tax of $1 per unit on good x.What is the new equation for the budget constraint?

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Question 1

Correct Answer:

Verified

The budget line

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Question 2

Correct Answer:

Verified

Suppose a consumer has an income I = $50 which he/she spends on pizza and tacos per month.The price of pizza is $10 and the price of tacos is $5.If the units of pizza consumed per month is on the x-axis and the units of tacos consumed per month is on the y-axis,the slope of the budget line is equal to

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Question 3

Correct Answer:

Verified

Let I be the income of the consumer,P_x be the price of good x and P_y be the price of good y.If good is measured along the horizontal axis and good is measured along the vertical axis,then the " -intercept" measures the maximum amount of good that the consumer can afford,which can be expressed as

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Question 4

Suppose all prices double and income triples.The budget line

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Question 5

The tangency condition for the optimal choice for a consumer is given by

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Question 6

Evaluate the truthfulness of the following statements. I.The budget constraint is a function of consumer preferences. II.The budget constraint defines the set of baskets that a consumer can purchase with a specific level of income.

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Question 7

Suppose a consumer buys two goods, and and has income of $30.Initially P_x = 3 and P_y = 3 and the consumer chooses basket with x = 7 and y = 1.The prices change to P_x = 4 and P_y = 2 and the consumer chooses basket with x = 5 and y = 5.

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Question 8

Suppose again the government offers poor people a housing voucher and units of housing is graphed on the x-axis and the composite good is graphed on the y-axis.The consumer will always choose to consume the exact amount of the housing voucher's units of housing when

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Question 9

If a consumer states that he is indifferent between receiving a gift certificate for $10 at the local bookstore and receiving $10 cash,we can infer that this consumer

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Question 10

If good is measured along the horizontal axis and good is measured along the vertical axis,then the slope of the budget constraint can be expressed as

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Question 11

Suppose the price of is $20,the price of is $10,and that the consumer is currently spending all available income.At the consumer's current consumption basket the marginal utility of is 8 and the marginal utility of is 4.

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Question 12

Suppose a consumer purchases two goods, and ,and that the price of doubles,the consumer's income doubles,and the price of remains unchanged.If good is plotted on the horizontal axis,the budget line

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Question 13

When analyzing how borrowing and lending affect the consumer's budget constraint,we measure spending in the current time period on the horizontal axis and spending in the future time period on the vertical axis.Assume that the interest rate at which the consumer can lend and borrow is 10%,income in period 1 is $1000 and income in period 2 is $1200.The point of maximum current consumption can be expressed as

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Question 14

Consider the concept of revealed preference.Suppose a consumer chooses basket A over basket B when basket B costs the same amount.The consumer

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Question 15

Using the information in problem 3 above and letting Z = the quantity of pizza per months and T = the number of tacos per month,the equation for the budget line is best represented by

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Question 16

Revealed preferences tells us that if basket costs less than basket but the consumer chooses instead of ,then we know that

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Question 17

At a consumer's interior optimum solution,which of the following will not necessarily hold true?

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Question 18

Suppose that U(x,y) = min(3x,y).Further suppose that P_x = $5 per unit and P_y = $10 per unit and income is I = $105.For this consumer,the optimal basket to buy would be

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Question 19

Suppose that MU_x = 10 and MU_y = 20.Further suppose that the consumer's budget constraint can be expressed as 20x + 10y = 400.For this consumer,the optimal amount of good to buy would be

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Question 20

Showing 1 - 20 of 57

An agent consumes goods x and y,with prices P_x = $5 per unit and P_y = $8 per unit.The consumer's income is I = $48.The government imposes a tax of $1 per unit on good x.What is the new equation for the budget constraint?

The budget line

Let I be the income of the consumer,P_x be the price of good x and P_y be the price of good y.If good is measured along the horizontal axis and good is measured along the vertical axis,then the " -intercept" measures the maximum amount of good that the consumer can afford,which can be expressed as

Suppose all prices double and income triples.The budget line

The tangency condition for the optimal choice for a consumer is given by

Evaluate the truthfulness of the following statements. I.The budget constraint is a function of consumer preferences. II.The budget constraint defines the set of baskets that a consumer can purchase with a specific level of income.

Suppose a consumer buys two goods, and and has income of $30.Initially P_x = 3 and P_y = 3 and the consumer chooses basket with x = 7 and y = 1.The prices change to P_x = 4 and P_y = 2 and the consumer chooses basket with x = 5 and y = 5.

Suppose again the government offers poor people a housing voucher and units of housing is graphed on the x-axis and the composite good is graphed on the y-axis.The consumer will always choose to consume the exact amount of the housing voucher's units of housing when

If a consumer states that he is indifferent between receiving a gift certificate for $10 at the local bookstore and receiving $10 cash,we can infer that this consumer

If good is measured along the horizontal axis and good is measured along the vertical axis,then the slope of the budget constraint can be expressed as

Suppose the price of is $20,the price of is $10,and that the consumer is currently spending all available income.At the consumer's current consumption basket the marginal utility of is 8 and the marginal utility of is 4.

Suppose a consumer purchases two goods, and ,and that the price of doubles,the consumer's income doubles,and the price of remains unchanged.If good is plotted on the horizontal axis,the budget line

Consider the concept of revealed preference.Suppose a consumer chooses basket A over basket B when basket B costs the same amount.The consumer

Using the information in problem 3 above and letting Z = the quantity of pizza per months and T = the number of tacos per month,the equation for the budget line is best represented by

Revealed preferences tells us that if basket costs less than basket but the consumer chooses instead of ,then we know that

At a consumer's interior optimum solution,which of the following will not necessarily hold true?

Suppose that U(x,y) = min(3x,y).Further suppose that P_x = $5 per unit and P_y = $10 per unit and income is I = $105.For this consumer,the optimal basket to buy would be

Suppose that MU_x = 10 and MU_y = 20.Further suppose that the consumer's budget constraint can be expressed as 20x + 10y = 400.For this consumer,the optimal amount of good to buy would be

Analyzing Economic Problems

Demand and Supply Analysis

Consumer Preferences and the Concept of Utility

The Theory of Demand

Inputs and Production Functions

Costs and Cost Minimization

Cost Curves

Perfectly Competitive Markets

Competitive Markets

Monopoly and Monopsony

Capturing Surplus

Market Structure and Competition

Game Theory and Strategic Behavior

Risk and Information

General Equilibrium Theory

Externalities and Public Goods

Filters

Exam 4: Consumer Choice

An agent consumes goods x and y,with prices Px = $5 per unit and Py = $8 per unit.The consumer's income is I = $48.The government imposes a tax of $1 per unit on good x.What is the new equation for the budget constraint?

The budget line

Let I be the income of the consumer,Px be the price of good x and Py be the price of good y.If good is measured along the horizontal axis and good is measured along the vertical axis,then the " -intercept" measures the maximum amount of good that the consumer can afford,which can be expressed as

Suppose all prices double and income triples.The budget line

The tangency condition for the optimal choice for a consumer is given by

Evaluate the truthfulness of the following statements. I.The budget constraint is a function of consumer preferences. II.The budget constraint defines the set of baskets that a consumer can purchase with a specific level of income.

Suppose a consumer buys two goods, and and has income of $30.Initially Px = 3 and Py = 3 and the consumer chooses basket with x = 7 and y = 1.The prices change to Px = 4 and Py = 2 and the consumer chooses basket with x = 5 and y = 5.

Suppose again the government offers poor people a housing voucher and units of housing is graphed on the x-axis and the composite good is graphed on the y-axis.The consumer will always choose to consume the exact amount of the housing voucher's units of housing when

If a consumer states that he is indifferent between receiving a gift certificate for $10 at the local bookstore and receiving $10 cash,we can infer that this consumer

If good is measured along the horizontal axis and good is measured along the vertical axis,then the slope of the budget constraint can be expressed as

Suppose the price of is $20,the price of is $10,and that the consumer is currently spending all available income.At the consumer's current consumption basket the marginal utility of is 8 and the marginal utility of is 4.

Suppose a consumer purchases two goods, and ,and that the price of doubles,the consumer's income doubles,and the price of remains unchanged.If good is plotted on the horizontal axis,the budget line

Consider the concept of revealed preference.Suppose a consumer chooses basket A over basket B when basket B costs the same amount.The consumer

Using the information in problem 3 above and letting Z = the quantity of pizza per months and T = the number of tacos per month,the equation for the budget line is best represented by

Revealed preferences tells us that if basket costs less than basket but the consumer chooses instead of ,then we know that

At a consumer's interior optimum solution,which of the following will not necessarily hold true?

Suppose that U(x,y) = min(3x,y).Further suppose that Px = $5 per unit and Py = $10 per unit and income is I = $105.For this consumer,the optimal basket to buy would be

Suppose that MUx = 10 and MUy = 20.Further suppose that the consumer's budget constraint can be expressed as 20x + 10y = 400.For this consumer,the optimal amount of good to buy would be

Analyzing Economic Problems

Demand and Supply Analysis

Consumer Preferences and the Concept of Utility

The Theory of Demand

Inputs and Production Functions

Costs and Cost Minimization

Cost Curves

Perfectly Competitive Markets

Competitive Markets

Monopoly and Monopsony

Capturing Surplus

Market Structure and Competition

Game Theory and Strategic Behavior

Risk and Information

General Equilibrium Theory

Externalities and Public Goods

Filters

An agent consumes goods x and y,with prices P_x = $5 per unit and P_y = $8 per unit.The consumer's income is I = $48.The government imposes a tax of $1 per unit on good x.What is the new equation for the budget constraint?

Let I be the income of the consumer,P_x be the price of good x and P_y be the price of good y.If good is measured along the horizontal axis and good is measured along the vertical axis,then the " -intercept" measures the maximum amount of good that the consumer can afford,which can be expressed as

Suppose a consumer buys two goods, and and has income of $30.Initially P_x = 3 and P_y = 3 and the consumer chooses basket with x = 7 and y = 1.The prices change to P_x = 4 and P_y = 2 and the consumer chooses basket with x = 5 and y = 5.

Suppose that U(x,y) = min(3x,y).Further suppose that P_x = $5 per unit and P_y = $10 per unit and income is I = $105.For this consumer,the optimal basket to buy would be

Suppose that MU_x = 10 and MU_y = 20.Further suppose that the consumer's budget constraint can be expressed as 20x + 10y = 400.For this consumer,the optimal amount of good to buy would be