Exam 5: Consumer Choice

The market demand for a product is

Sellers can increase total revenues by charging different individuals the maximum they are willing to pay.

The additional pleasure or satisfaction from a good declines as more of it is consumed in a given period.This is the definition of the

Marginal utility is the

Price discrimination works best when

The law of diminishing marginal utility gives us insight into the downward-sloping demand curve because consumers are willing to pay a higher price for goods with high marginal utility.

The mix of consumer purchases that maximizes the utility attainable from available income is called the

Two indifference curves can cross one another.

The slope of the budget constraint, when a consumer has reached optimal consumption of two goods, is equal to the

Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.If the price per unit of good X is $1, the consumer would maximize utility by consuming

Any point on the budget constraint

Status and ego considerations in consumption are economic explanations of demand.

Refer to Figure 19.2.The total utility of two apples is

Consumer surplus does not exist because some consumers cannot afford to purchase the product at all.

The marginal utility for a good is computed as

Complete Table 19.3 below.Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit. Refer to Table 19.3.If Michael has $48 to spend on cola and pretzels, what combination should he purchase in order to maximize his utility?

Which of the following is not held constant when considering a shift in the demand for pizza?

Complete Table 19.2 below: Quantity Total Marginal 1 15 15 2 9 3 30 4 3 $\text {Table 19.2}$ In Table 19.2, the total utility when two units are consumed is

As compared to sociologists and psychologists, economists accept consumer tastes as given and instead focus on

An individual's consumer surplus is the difference between the maximum price that she or he is willing to pay and the actual price.