Exam 21: The Theory of Consumer Choice

Figure 21-31 The figure shows two indifference curves and two budget constraints for a consumer named Kevin. -Refer to Figure 21-31. If point A is Kevin's optimum, then at that optimum, what is his opportunity cost of a shirt in terms of sweaters?

The slope of the budget constraint is all of the following except

A family on a trip budgets $800 for meals and gasoline. If the price of a meal for the family is $50, how many meals can the family buy if they do not buy any gasoline?

Samantha is maximizing total utility while consuming food and clothing. Her marginal utility from food is 50, and her marginal utility from clothing is 25. If clothing is priced at $10 per unit, the price of food per unit must be

Figure 21-18 -Refer to Figure 21-18. Bundle C represents a point where

Figure 21-8 -Refer to Figure 21-8. If the price of good X is $3, and your budget constraint is BC, what is the price of good Y?

A consumer chooses an optimal consumption point where the

When considering her budget, the highest indifference curve that a consumer can reach is the

The indifference curves for perfect substitutes are right angles.

Billie spends all of her income on soccer balls and jeans, and the price of a pair of jeans is three times the price of soccer balls. In order to maximize total utility, Billie should

Andi uses all of her income to purchase books and games. At any two points A and B on Andi's budget constraint,

If we observe that a consumer's budget constraint has shifted outward, we can assume that the consumer will buy

Figure 21-24 The figure shows three indifference curves and a budget constraint for a certain consumer named Steve. -Refer to Figure 21-24. Which of the following pairs of prices matches the appearance of the budget constraint?

If goods X and Y are both normal goods for Brenda, then an increase in Brenda's income will lead her to__________.

Figure 21-31 The figure shows two indifference curves and two budget constraints for a consumer named Kevin. -Refer to Figure 21-31. If Kevin's income is $1,260, then what is the price of a sweater?

A typical consumer consumes both coffee and donuts. After the consumer's income decreases, the consumer consumes more coffee but fewer donuts than before. For this consumer, coffee is a normal good, but donuts are an inferior good.

If leisure were an inferior good, then labor supply curves

Economists have found evidence of a Giffen good when studying the consumption of rice in the Chinese province of Hunan.

Assume that a college student spends her income on mac-n-cheese and CDs. The price of one box of mac-n- cheese is $1, and the price of one CD is $12. If she has $200 of income, she could choose to consume

What does the slope of a consumer's indifference curve represent?