Exam 16: Consumer Choice

Peter is deciding between consuming Good X and Good Y.At his current level of consumption,his marginal utility per dollar for Good X is less than the marginal utility per dollar for Good Y.To achieve the consumer optimum,Peter needs to

Refer to the following table to answer the following questions: -Assume that chips cost $1 and soda costs $2.If the consumer has $7,the combination of goods that would maximize her utility per dollar and remain within her budget would be

On a single graph,draw the supply and demand curves for both water and diamonds.Make sure the price of diamonds is higher than the price of water. a.Label the total utility of water. b.Label the total utility of diamonds.

Which of the following statements is always true when determining the consumer optimum?

Refer to the following table to answer the following questions: -Assume that strawberries cost $1 and apples cost $2.Which of the following combinations of strawberries and apples satisfies the following rule?

Refer to the following table to answer the following questions: -The marginal utility of the eighth unit is

A(n)________ is a quantification of relative satisfaction.

Refer to the following table to answer the following questions: -Assume that chips cost $1 and soda costs $2.If the consumer has $14,the combination of goods that would maximize his utility per dollar and remain within his budget would be

When comparing two goods for purchase,it is useful to acknowledge the marginal utility and the dollar price.The optimizing decision requires choosing the good with the

Suppose Annabelle's favorite ice cream flavor,strawberry,costs $1.50 per cone and chocolate costs $1.00 per cone.If she receives 10 utils when she eats chocolate ice cream,how many additional utils would she need to get from eating strawberry ice cream to make her indifferent between purchasing the two flavors of ice cream?

A company in Irvine,California,is interested in buying season tickets to the local baseball team.Tickets for scheduled games are sold individually for $12 each,but season tickets are only $4 each.The reason why the local baseball team has to charge less for season tickets can be explained by

Diminishing marginal utility is a decline in ________ with each additional ________.

Since two goods are subject to diminishing marginal utility,the marginal rate of substitution is

Suppose Chuck's favorite beverage is cold lemonade and it costs $2 per glass,whereas a bottle of water costs $1.If Chuck receives 30 utils when he drinks water,how many additional utils would he need to get from drinking lemonade to cause him to spend the extra dollar it costs to buy it?

Jon is at a sports bar watching the Olympics.He has been eating chicken wings and drinking root beer all night and has only enough money to buy one or the other before the bar closes.The waitress stops by the table and asks him if he wants anything else.Using utility theory,how will Jon make his decision?

A consumer cannot be indifferent about two combinations that yield disparate levels of utility.Therefore,an indifference curve cannot be

Someone who is not a "morning person" is often heard saying,"I'm cranky until I've had a cup of coffee." After that first cup of coffee (and a mood improvement),the person experiences the uncommon phenomenon of ________.That is,of course,until the stress of a typical day takes its toll.

Draw the indifference curves for two goods that are perfect substitutes.

When marginal utility is negative,total utility

Refer to the following figure to answer the following questions: -Total utility is highest at the ________ cupcake.