EBK ECONOMICS FOR TODAY
9th Edition
ISBN: 8220101414250
Author: Tucker
Publisher: Cengage Learning US
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Question
Chapter 6, Problem 1SQ
To determine
Consumption and
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Students have asked these similar questions
If the average utility of good A is 15 and the average utility of good B is 25, you should:
A. keep consuming the current amounts of both good A and good B.
B. consume more of good B and less of good A.
C. consume more of good A and less of good B.
D. realize that you don't have enough information to answer the question.
How does the law of diminishing marginal utility relate to changing income?
Select one:
a. The marginal benefit of an extra dollar of income rises as income rises.
b. The marginal benefit of an extra dollar of income falls as income rises.
c. The total utility gained from a small income is higher than the total utility gained from a high income.
d. The total utility gained from a high income is higher than the total utility gained from a low income.
Law of Diminishing Marginal UtilityIndicate whether each of the following statements is true or false. Explain why.A.The law of diminishing marginal utility states that as an individual increases consumption of a given product within a set period of time, the utility gained from consumption eventually declines.B.Marginal utility measures the added satisfaction derived from a one-unit increase in consumption, holding consumption of other goods and services constant.C.When goods are relatively scarce, the law of diminishing marginal utility means that the added value of another unit of goods will be small in relation to the added value of another unit of services.D.The law of diminishing marginal utility gives rise to a downward-sloping demand curve for all goods and services.
Chapter 6 Solutions
EBK ECONOMICS FOR TODAY
Ch. 6.1 - Prob. 1YTECh. 6.1 - Prob. 2YTECh. 6.2 - Prob. 1YTECh. 6.A - Prob. 1SQPCh. 6.A - Prob. 2SQPCh. 6.A - Prob. 3SQPCh. 6.A - Prob. 1SQCh. 6.A - Prob. 2SQCh. 6.A - Prob. 3SQCh. 6.A - Prob. 4SQ
Ch. 6.A - Prob. 5SQCh. 6.A - Prob. 6SQCh. 6.A - Prob. 7SQCh. 6.A - Prob. 8SQCh. 6.A - Prob. 9SQCh. 6.A - Prob. 10SQCh. 6.A - Prob. 11SQCh. 6.A - Prob. 12SQCh. 6.A - Prob. 13SQCh. 6.A - Prob. 14SQCh. 6.A - Prob. 15SQCh. 6 - Prob. 1SQPCh. 6 - Prob. 2SQPCh. 6 - Prob. 3SQPCh. 6 - Prob. 4SQPCh. 6 - Prob. 5SQPCh. 6 - Prob. 6SQPCh. 6 - Prob. 7SQPCh. 6 - Prob. 8SQPCh. 6 - Prob. 9SQPCh. 6 - Prob. 10SQPCh. 6 - Prob. 1SQCh. 6 - Prob. 2SQCh. 6 - Prob. 3SQCh. 6 - Prob. 4SQCh. 6 - Prob. 5SQCh. 6 - Prob. 6SQCh. 6 - Prob. 7SQCh. 6 - Prob. 8SQCh. 6 - Prob. 9SQCh. 6 - Prob. 10SQCh. 6 - Prob. 11SQCh. 6 - Prob. 12SQCh. 6 - Prob. 13SQCh. 6 - Prob. 14SQCh. 6 - Prob. 15SQCh. 6 - Prob. 16SQCh. 6 - Prob. 17SQCh. 6 - Prob. 18SQCh. 6 - Prob. 19SQCh. 6 - Prob. 20SQ
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Similar questions
- The mathematical equation that presents the inverse relationship of price and quantity that a consumer is willing and able to buy at a given time, ceteris paribusSingle choice. a. Budget function b. Demand function c. Supply functionarrow_forwardBob consumes food and housing. Suppose his marginal utility from an additional unit of food is 20 and his marginal utility from an additional unit of housing is 180. Furthermore, suppose the price of a unit of food is $1.00 and the price of a unit of housing is $2.00. Can Bob increase his utility without changing his total expenditures on food and housing? Holding expenditures constant, A. Bob can increase utility by spending more on food and less on housing. B. Bob can increase utility by spending more on food and the same amount on housing. C. Bob can increase utility by spending less on food and more on housing. D. Bob cannot increase his utility. E. Bob can increase utility by spending more on food and more on housing.arrow_forwardMr. Max is about to purchase 4 units of good A and 6 units of good B. The price of both A and B is $2. Mr. Max has only $20 to spend. If the marginal utility of the fourth unit of A is 12 and the marginal utility of the sixth unit of B is 12, then: a. he should not buy anything. b. he should buy more of A and less of B. c. he should buy less of A and more of B. d. he should buy A and B in the quantities indicated. e. he should buy more of A and little more than that of B.arrow_forward
- According to the law of diminishing marginal utility, what happens as a consumer consumes more units of a good? A. Total utility increases at a decreasing rate.B. Marginal utility increases at a decreasing rate.C. Total utility decreases at an increasing rate.D. Marginal utility decreases at an increasing rate.arrow_forwardEffect of an increase in income leads to: an increase in the consumer's utility. The statement is true or false? Explainarrow_forwardAccording to the law of diminishing marginal utility, marginal utility of a good declines as more of it is consumed in a given time period. According to this law, which of the following statement is true? a. The more I go to school, the more I want to do something else b. Since we need gasoline more than we need paper, gasoline is more valuable c. Peas give me no satisfaction, so I won't buy any d. The more coffee I drink, the more I want to drinkarrow_forward
- Which situation is consistent with the law of diminishing marginal utility? a. Paul's marginal utility from eating burgers reaches a maximum when total utility is zero. b. The more burgers Paul eats, the more he enjoys another burger c. Paul's marginal utility from eating burgers becomes positive after eating three burgers. d. The more burgers Paul eats, the less he enjoys another burgerarrow_forwarda. Which graph shows a change in the price of X, but no changes in the price of Y and in the buyer's budget?Which graph shows a change in the buyer's income, but no changes in the prices of X and Y?Which graph shows an increase in the price of Y and a decrease in the price of X?arrow_forwardQuantity of cola 600 400 300 Quantity of pizza 200 A consumer has a total budget of $800 to spend on pizza and cola. 1) Find the price of pizza and that of cola at the initial budget line. What is the slope of the initial budget line. 2) If the prices of the two goods remain the same, what is the new budget of the consumer? How does the consumption of the consumer change? What is the new slope of his budget line?arrow_forward
- The law of diminishing marginal utility says that... A. as a person consumes more and more of a certain good, the addition to total satisfaction decreases. B. as a person's income increases, the satisfaction associated with each additional dollar earned increases. C. as a person consumes more and more of a certain good, the additional satisfaction increases. D. as a person's income increases, the satisfaction associated with each dollar spent decreases. Assume that this law holds for Quincy with ice cream and pretzels.... Quincy decides to eat less ice cream and more pretzels. As a result, A. Quincy's marginal utility of both ice cream and pretzels increases. B. Quincy's marginal utility of ice cream decreases, and his marginal utility of pretzels increases. C. Quincy's marginal utility of ice cream increases, and his marginal utility of pretzels decreases. D. Quincy's marginal utility of both ice cream and pretzels decreases.arrow_forwardAlong an individual demand curve for food, which one of the following is not held constant? a.The consumer's income b.The consumer's level of utility c.The price of all other goods d.The consumer's utility functionarrow_forwardYou consume only soda and pizza. One day, the priceof soda goes up, the price of pizza goes down, andyou are just as happy as you were before the pricechanges.a. Illustrate this situation on a graph.b. How does your consumption of the two goodschange? How does your response depend onincome and substitution effects?c. Can you afford the bundle of soda and pizza youconsumed before the price changes?arrow_forward
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