Exam 16: Consumer Choice

The additional satisfaction derived from consuming one more unit of a good or service is called

If a decrease in price results in only a small amount in savings,the enhanced purchasing power is effectively

One explanation for the existence of the diamond-water paradox is that

Lower prices increase the marginal utility per dollar spent and cause consumers to buy more of a good.On the other hand,higher prices lower the marginal utility per dollar spent and cause consumers to buy less of a good.This is a way of restating ________ in terms of marginal utility.

Refer to the following figure.Which is the most affordable path to the highest utility?

When a consumer maximizes utility,economists say that he or she has

Economists expect the firm to maximize ________,the laborer to accept the best ________,and the consumer to find the combination of goods that gives the most ________.

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

Refer to the following figure to answer the following questions: -The marginal utility experienced from consuming the seventh taco is

________ exist(s)when a consumer is completely indifferent between two goods.

Ronnie's favorite dessert is apple pie.After eating apple pie for three days in a row,he decides he wants banana crème pie instead of apple pie for dessert.Using utility theory,explain why Ronnie would make this consumption decision.

Refer to the following table to answer the following questions: -This consumer experiences diminishing marginal utility

________ exist(s)when a consumer is interested in consuming two goods in fixed proportions.