Exam 7: Consumer Choice

A certain athlete loves donuts.He receives 100 units of utility for the first donut,an additional 80 for the second,an additional 60 for the third,another 40 for the fourth,and another 20 for the fifth.The marginal utility of the fourth donut is ________ and the total utility from consuming four donuts is ________.

Quantity of Magazines/Wk Total Utility Quantity of Paperback Books/Wk Total Utility 0 0 0 0 1 50 1 300 2 90 2 500 3 120 3 600 4 130 4 650 5 132 5 675 6 132 6 680 -The price of a magazine is $2,the price of a paperback book is $5,and the consumer has $33.According to the above table,the rational consumer will purchase

Quantity of Magazines/Wk Total Utility Quantity of Paperbacks/Wk Total Utility 0 0 0 0 1 60 1 200 2 100 2 400 3 130 3 500 4 140 4 550 5 142 5 575 6 142 6 580 -Refer to the above table.If the consumer's equilibrium consists of 3 magazines and 6 books,then we know that

Explain how a consumer maximizes utility.

A curve where every combination of the two goods being considered yields the same level of satisfaction is known as

Number of Bottles of Soda Total Utility Marginal Utility 1 100 2 20 3 15 4 140 -Using the above table,what is the total utility of consuming 2 bottles of soda?

An indifference curve between one dozen eggs and several dozens of eggs would be

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 fourth slice of pizza consumed?

Sam loves cookies.She receives 200 utils for one cookie,360 for two cookies,480 for the third,560 for four cookies,and 600 for five cookies.The marginal utility of the third cookie is

A well-known athlete loves cupcakes.He receives 200 utils for the first cupcake,an additional 160 for the second,an additional 120 for the third,another 80 for the fourth,and another 40 for the fifth.The marginal utility of the fourth cupcake is ________ and the total utility of consuming four cupcakes is ________.

Economists assume that people make decisions regarding consumption based on comparing

If incomes fall,then

If the commercial is correct that every additional bite tastes as good as the first,the marginal utility from consuming more of the advertised product must be

If the last $5 spent on movies added 30 utils to your total satisfaction and the last $8 spent on books add 64 utils,

Suppose a consumer is currently buying 5 goods so that utility is maximized.The price of one of the goods falls while the prices of the other 4 goods do not change.The consumer should

Quantity of Good X/Wk Marginal Utility Quantity of Good Y/Wk Marginal Utility 1 1200 1 1700 2 1000 2 1400 3 800 3 1100 4 600 4 800 5 400 5 500 6 100 6 200 -Refer to the above table.If the price of Good X is $1,the price of Good Y is $2,and the consumer has $13,the rational consumer will purchase

For good A and good B,the consumer maximizes personal satisfaction when

Newspaper vending machines are often built so that customers can pay to lift a door and take a paper off a pile of daily newspapers.Newspaper distributors are not concerned about customers taking the whole stack of papers because

Suppose that the quantity of hamburgers is measured along the vertical axis and that the number of bags of popcorn is measured along the horizontal axis.The budget constraint has a vertical intercept of 10 hamburgers,and the slope of the line is -1.If the price of popcorn doubles,we know that

Basket of goods A is on an indifference curve that lies further from the origin than basket B.From this we know that