Question :
31) Refer to Figure 6-2. Suppose the price of Y : 1384184
31) Refer to Figure 6-2. Suppose the price of Y is $1, the consumer’s income is $10, and the consumer is currently buying 3 units of good X and 4 units of good Y. If this consumer is maximizing her utility, then the price of X must be
A) $1.
B) $2.
C) $3.
D) $4.
E) Impossible to tell with the given information.
32) Refer to Figure 6-2. Suppose that the price of X is $2, the price of Y is $1, the consumer’s income is $10, and the consumer is buying 3 units of good X and 4 units of good Y. What is the total utility the consumer obtains from this combination of X and Y?
A) 18
B) 30
C) 40
D) 60
E) 72
33) Refer to Figure 6-2. Suppose that the price of X is $2, the price of Y is $1, and the consumer’s income is $10. The consumer is currently buying 3 units of good X and 4 units of good Y. In order to maximize his/her utility, the consumer should
A) not change his/her behaviour.
B) buy the same amount of X but less Y.
C) buy more of X but the same amount Y.
D) buy more of X and less Y.
E) buy less of X and more Y.
34) Refer to Figure 6-2. Suppose the price of Y is $1 and the consumer’s income is $10. Initially, the price of X is $2 and the consumer is buying 3 units of good X and 4 units of good Y. If the price of X then falls to $1, what quantities of X and Y will he/she now purchase in order to maximize total utility?
A) 2 X and 8 Y.
B) 3 X and 7 Y.
C) 4 X and 6 Y.
D) 5 X and 5 Y.
E) 6 X and 4 Y.
35) Refer to Figure 6-2. Suppose that the price of Y is $1 and the consumer’s income is $10. Initially, the price of X is $2 and the consumer is buying 4 units of good Y. If the price of X then falls to $1, which of the following pairs of quantities of X correctly completes the demand schedule below?
A) 2; 4
B) 4; 4
C) 4; 3
D) 6; 3
E) 6; 4
36) Christine is allocating her household expenditure between cleaning services and gardening services in order to maximize the household’s total utility. For the quantities of cleaning and gardening services she has chosen, an increase in the price of cleaning service will, ceteris paribus,
A) increase the marginal utility of a unit of cleaning service.
B) reduce the marginal utility per dollar spent on cleaning service.
C) reduce the marginal utility of a unit of cleaning service.
D) increase the marginal utility per dollar spent on cleaning service.
E) have no effect on the marginal utility per dollar spent on cleaning service.
37) Consider a consumer who divides his income between spending on good X and good Y. The opportunity cost of good X in terms of good Y is reflected by the
A) absolute price of good X.
B) absolute price of good Y.
C) ratio of the price of X to the price of Y.
D) ratio of the price of Y to the price of X.
E) price of good X relative to the prices of all other goods.
38) The Smith family is allocating its monthly household expenditure between only two goods, food and clothing. Suppose that the price of food is $5 per unit, and the price of clothing is $10 per unit and that the marginal utility that the family is receiving from its consumption of food is currently 25. What is the family’s marginal utility from its consumption of clothing if it is maximizing its utility?
A) 5
B) 10
C) 12.5
D) 25
E) 50
39) The Smith family is allocating its monthly household expenditure between only two goods, food and
A) 200
B) 150
C) 75
D) 16
E) 12
40) Bjorn is a student with a monthly budget of $500, which he allocates between transportation services and “all other goods.” Suppose the price of transportation is $5 per unit, and the price of “all other goods” is $20 per unit. The marginal utility he currently receives from his consumption of transportation services is 60. What is his marginal utility from the consumption of “all other goods” if he is maximizing his utility?
A) 5
B) 20
C) 25
D) 200
E) 240
