Question Score: 0 of 1 pt Test Score: 63.89% (7.67 of 12 pts)
The water-diamond paradox was solved by realizing the price people are willing to pay for a unit of a particular commodity is determined by.
Question Score: 1 of 1 pt Test Score: 63.89% (7.67 of 12 pts)
Total utility
Question Score: 1 of 1 pt Test Score: 63.89% (7.67 of 12 pts)
Fill in the missing cells in the table.
Question Score: 1 of 1 pt Test Score: 63.89% (7.67 of 12 pts)
Other things remaining equal, as the relative price of a good falls, people consume more of that good because
Question Score: 1 of 1 pt Test Score: 63.89% (7.67 of 12 pts)
In consumer theory, utility is
Question Score: 1 of 1 pt Test Score: 63.89% (7.67 of 12 pts)
Which of the following examples are used as evidence favouring the bounded rationality assumption?
Question Score: 0 of 1 pt Test Score: 63.89% (7.67 of 12 pts)
Suppose the price of apples falls relative to other similar goods, and as a result the quantity of apples demanded increases; This is caused by
Question Score: 1 of 1 pt Test Score: 63.89% (7.67 of 12 pts)
Quantity of Hamburgers /Wk
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Total Utility Hamburgers
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Marginal Utility Hamburgers
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Quantity of Movies /Wk
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Total Utility Movies /Wk
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Marginal Utility Movies /Wk
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1
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40
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40
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1
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400
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400
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2
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60
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20
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2
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700
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300
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3
|
76
|
16
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3
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850
|
150
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4
|
86
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10
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4
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950
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100
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5
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91
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5
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5
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1000
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50
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6
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93
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2
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6
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1025
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25
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Refer to the table above. Suppose the price of a movie is $5 and the consumer’s, Suppose the price of a movie is $5 and the consumers’ income is $29. What are the quantities demanded of hamburgers at prices of $2 and $1 respectively?
Question Score: 0.67 of 1 pt Test Score: 63.89% (7.67 of 12 pts)
Given the following table, fill in the blank below.
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Price of Pizza =$5
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Price of Video =$4
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Price of Video =$5
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Units
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Total Utility Pizzas
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MU/ S Pizzas
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Total Utility Videos
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MU/S Videos
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MU/S Videos
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1
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50
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10
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30
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7.5
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6
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2
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90
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8
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58
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7
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5.6
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3
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120
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6
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82
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6
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4.8
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4
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140
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4
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102
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5
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4
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5
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150
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2
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118
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3.2
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6
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155
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1
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130
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3
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2.4
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7
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155
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0
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138
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2
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1.6
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If your income was $40 and the price of pizzas was $5 and the price of videos was $4, what combination of pizzas and video would maximize your utility?
Question Score: 1 of 1 pt Test Score: 63.89% (7.67 of 12 pts)
The use of utility-based consumer choice theory
Question Score: 1 of 1 pt Test Score: 63.89% (7.67 of 12 pts)
If total utility is increasing at a decreasing rate, marginal utility is
Question Score: 0 of 1 pt Test Score: 63.89% (7.67 of 12 pts)
The law of diminishing marginal utility insures that