al utility is the: sensitivity of consumer purchases of a good to changes in the price of that good. change in total utility obtained by consuming one more unit of a good. change in total utility obtained by consuming another unit of a good divided by the change in the price of that good. total utility associated with the consumption of a certain number of units of a good divided by the number of units consumed.

al utility is the: sensitivity of consumer purchases of a good to changes in the price of that good. change in total utility obtained by consuming one more unit of a good. change in total utility obtained by consuming another unit of a good divided by the change in the price of that good. total utility associated with the consumption of a certain number of units of a good divided by the number of units consumed.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 8SQ

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Question 26 Any combination of goods lying outside of the budget line: implies that the consumer is not spending all his income. yields less utility than any point on the budget line. is unobtainable, given the consumer's income. yields less utility than any point inside the budget line.
Question 11 Which one of the following statements is incorrect? Each point on a budget line stands for a different combination of 2 goods. All points on a budget line stand for the same level of satisfaction. The indifference curve is convex to the origin because of the law of diminishing marginal utility. Each point on an indifference curve represents a different combination of 2 goods All points on an indifference curve stand for the same level of satisfaction.
Question 4 With the prices of commodities A, B and C equal, which of the following should a consumer do to maximize her utility? Regard these commodities as providing equal satisfaction value Buy these commodities in the quantities needed to make their marginal utilities equal. Buy quantities of each which make total utilities equal. Divide her budget equally among these commodities. None of the suggested options.
Question 9 Rational consumer behaviour is where a person consumes the amount of a good that maximises the total utility from the good. maximises the consumer surplus from the good. minimises the amount spent on the good to achieve a given level of utility. maximises the marginal utility from the good
Question 14 Marginal utility can be: decreasing, but not negative. positive, but not negative positive, negative, or zero. positive or negative, but not zero.
Question 6 A consumer spends all of her income on two goods, coffee and doughnuts. She buys coffee at 25 cents per unit with a total utility of 800 and a marginal utility of 12. Doughnuts are purchased at 75 cents a unit with a total utility of 200 and a marginal utility of 24. To increase her total utility, the consumer should: Buy more coffee and less doughnuts Buy more of both goods Do nothing. She is currently maximizing utility with her limited budget. Buy less of both goods Buy more doughnuts and less coffee.
Question 18 An increase in the price of product A will: cause utility-maximizing consumers to buy more of A. decrease the marginal utility per dollar spent on A. not affect the marginal utility per dollar spent on A. increase the marginal utility per dollar spent on A.
Question 28 The marginal rate of substitution measures the: extra utility that a consumer derives from successive units of a product. consumer's willingness to substitute one product for another so that total utility will remain constant. magnitude of the substitution effect. total utility received by a consumer when equilibrium is achieved.
Question 9 If income decreases and prices are unchanged, the consumer’s budget constraint... Group of answer choices remains the same. shifts outward. shifts inward. rotates outward along the horizontal axis.
A consumer can maximize utility relative to their budget if they consume where Question 22 options: they spend the least money possible. marginal utility has fallen to zero. they buy an equal number of all goods. marginal utility per dollar for all goods are equal.
8. Substitutes, complements, or unrelated? You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: penguin patties, frizzles, and kipples. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of penguin patties decreases by 5%, the quantity of frizzles sold increases by 4% and the quantity of kipples sold decreases by 6%. Your job is to use the cross-price elasticity between penguin patties and the other goods to determine which goods your marketing firm should advertise together. Complete the first column of the…
Question 9 Consumer equilibrium on an indifference map is at: Any point on the budget line. Any point inside the budget line. Any intersection of the budget line and an indifference curve. That point where the budget line is tangent to an indifference curve. Any point on the highest indifference curve shown on the indifference map.