Exam 7: Consumer Choice

Quantity of Hamburgers/Wk Total Utility Quantity of Movies/Wk Total Utility 0 0 0 0 1 25 1 200 2 45 2 260 3 55 3 300 4 60 4 320 5 61 5 325 -Refer to the above table.Assume the consumer spends his entire income.The price of a hamburger is $1,the price of a movie is $6,and the consumer has $15.What is the consumer's optimum?

Typically,an individual takes only one newspaper from the bin because

If the quantity of hamburgers is measured along the horizontal axis and the quantity of movies is measured along the vertical axis,an increase in the price of a movie would be shown by

An indifference curve cannot be positively sloped because

Quantity of Movies Total Utility Mary Total Utility John 3 100 190 4 140 250 5 170 300 6 190 340 7 200 370 8 210 390 9 210 405 10 200 415 11 190 420 -Refer to the above table.What is the marginal utility for the 10th unit for Mary and for John?

The diamond-water paradox illustrates the idea that ________ determines what consumers are willing to pay for a particular good.

The real-income effect of a price change is most significant when

As an individual consumes more of a particular commodity,the total level of utility derived from that consumption usually

The change in the total utility as a result of increasing consumption by one unit is known as

Economists infer that a consumer receives more utility from one good than another by

What is marginal utility? Why is the term "marginal" important in utility analysis?

Why can't an indifference curve be a straight line?

Pizza Marginal Utility 1st Slice 7 utils 2nd Slice 6 utils 3rd Slice 4 utils 4th Slice 3 utils -Suppose Lois usually buys two cups of coffee for two dollars each and one scone for two dollars each.If the price of scones falls to one dollar each and she now buys two cups of coffee and two scones,this illustrates the

Slices of Pizza Total Utility Marginal Utility 1 50 2 90 3 120 4 130 5 137 6 120 -In the above table,what is the marginal utility of the sixth slice of pizza consumed?

When indifference curve analysis is used,a consumer optimum occurs at the point at which

The term marginal means

-Use the above figure.The consumer's choice changes from YB to YA.Which of the following statements is true?

The slope of the budget line is

Observations of real-world situations that appear to violate a consumer optimum could be offered as evidence favoring

Quantity of A Quantity of 1 18 1 10 2 33 2 18 3 42 3 22 4 48 4 24 5 51 5 25 -The price of product A is $3,the price of product B is $2,and you have $18 to spend.What combination of product A and product B will give you the most satisfaction?