Exam 7: Consumer Choice

The price of a hamburger is $1,the price of a movie is $5,and the consumer has $13.A consumer has purchased 3 hamburgers and two movies,receiving 10 units of utility for the last hamburger and 10 units of utility for the last movie.The set of goods

If total utility is unchanged,then marginal utility is

Quantity Total Utility 0 0 1 10 2 25 3 45 4 60 5 68 6 72 -Refer to the above table.At what quantity does diminishing marginal utility set in?

A rational consumer will NEVER purchase a product when its

A consumer optimum is characterized by

Along a given indifference curve,a consumer reduces the quantity of one good in favor of more units of the other.In this situation

The real-income and the substitution effects reinforce each other by

Marginal utility is defined as

The utility that people experience from the consumption of a good depends on

The price of hamburgers is $2 and the price of movies is $4.The consumer has $16 of income.The consumer is purchasing 3 hamburgers and receiving 20 utils for the last hamburger.He is also purchasing 2 movies and receiving 40 utils for the last movie.This set of goods

The law of diminishing marginal utility implies that the marginal utility for a particular product

The budget constraint shows that

Quantity of Movies Watched per Week Michelle's Total Utility per Week Robert's Total Utility per Week 0 0 0 1 100 100 2 195 190 3 270 270 4 340 340 5 390 400 6 420 350 7 435 390 8 445 420 9 450 440 10 440 450 -Refer to the above table.The marginal utility of the 2nd movie for Robert is

-In the above figure,if the budget line is originally line DE and the price of coffee decreases,the consumer will

Regretting a last unit of consumption of cake implies that

The law of demand is derived under the assumption of

-In the above figure,point C is

A consumer is buying the optimal amount of goods when

When you tell your mother,"I'll never be tired of your cooking," you are saying the

Assume that good X and good Y each have diminishing marginal utility for a consumer.In this case,