Reference: Ref 10–17
(Table: Consumer Equilibrium) Look at the table Consumer Equilibrium. Assume that the
price of good X is $5 per unit, the price of good Y is $1 per unit, and you have $10 of income
to spend on both goods. To maximize utility, you would consume ________ units of X and
________ units of Y.
205. Multiple Choice: Reference: Ref 10-17 (Table: Consume…
Question
Reference: Ref 10-17
(Table: Consumer Equilibrium) Look at the table Consumer Equilibrium. Assume that the
price of good X is $2 per unit, the price of good Y is $1 per unit, and you have $10 of income
to spend on both goods. To maximize utility, you would consume ________ units of X and
________ units of Y.
206. Multiple Choice: Choices that maximize total utility g...
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Question Choices that maximize total utility generally produce demand curves that are:
207. Multiple Choice: If the price of coffee cups falls and...
Question If the price of coffee cups falls and the consumer decides to buy more coffee cups solely
because they are less expensive, this describes the:
208. Multiple Choice: The substitution effect of a price ch…
Question The substitution effect of a price change is described by which of the following statements?
209. Multiple Choice: Market demand is found by:
Question Market demand is found by:
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210. Multiple Choice: According to the substitution effect,...
Question According to the substitution effect, which of the following best describes why a decrease in
the price of LED light bulbs leads to an increase in the quantity of LED light bulbs demanded?
211. Multiple Choice: Which of the following statements is ...
Question Which of the following statements is true?
212. Multiple Choice: According to the substitution effect,...
Question According to the substitution effect, a decrease in the price of a product leads to an increase
in the quantity of the product demanded because buyers:
213. Multiple Choice: The substitution effect always involv…
Question The substitution effect always involves a change in consumption in the ________ the
________ change.
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opposite direction to; budget
214. Multiple Choice: If, because of a price change, both t…
Question If, because of a price change, both the income and substitution effects are strong for a normal
good, this segment of the demand curve must be:
215. Multiple Choice: A Giffen good is one in which the ___…
Question A Giffen good is one in which the ________ curve is ________ sloped.
216. Multiple Choice: Jane is a utility-maximizing consumer…
Question Jane is a utility-maximizing consumer who is consuming the optimal quantity of wallets and
eyeglasses and spending her entire budget. The price of wallets falls. Jane will:
217. Multiple Choice: Which of the following best describes...
Question Which of the following best describes the income effect of a price increase?
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218. Multiple Choice: The demand curve for a normal good wi…
Question The demand curve for a normal good will always slope downward because:
219. Multiple Choice: For the vast majority of goods, deman...
Question For the vast majority of goods, demand curves slope downward because:
220. Multiple Choice: The income effect of a price change o...
Question The income effect of a price change of e-Books is the effect on consumption changes due to
a change in:
221. Multiple Choice: The income effects of a change in the…
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Question The income effects of a change in the price of e-Books are most important for goods that:
222. Multiple Choice: A Giffen good is not correctly descri...
Question A Giffen good is not correctly described by which of the following?
223. Multiple Choice: Assume that as the price of cauliflow...
Question Assume that as the price of cauliflower falls, the income effect causes consumers to buy
fewer heads of cauliflower. We can conclude that cauliflower is:
224. Multiple Choice: The income effect refers to:
Question The income effect refers to:
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225. Multiple Choice: Which of the following statements is ...
Question Which of the following statements is false?
226. Multiple Choice: When the price of an inferior good fa...
Question When the price of an inferior good falls, the substitution effect contributes to ________ in the
quantity demanded and the income effect ________ the substitution effect.
227. Multiple Choice: Reference: Ref 10-18 (Table: Utility…
Question
Reference: Ref 10-18
(Table: Utility from Candy Bars and Sodas) Look at the table Utility from Candy Bars and
Sodas. Stan is choosing between two goods, candy bars and sodas, and his marginal utility
from each is as shown in the table. If he consumes two candy bars and two sodas, his total
utility will be equal to:
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228. Multiple Choice: Reference: Ref 10-18 (Table: Utility…
Question
Reference: Ref 10-18
(Table: Utility from Candy Bars and Sodas) Look at the table Utility from Candy Bars and
Sodas. Stan is choosing between two goods, candy bars and sodas, and his marginal utility
from each is as shown in the table. Stan’s daily income is $11, the price of a candy bar is $2,
and the price of a soda is $1. Which consumption bundle will maximize his utility, given this
budget constraint?
229. Multiple Choice: Consumers maximize utility because th...
Question Consumers maximize utility because they are said to be:
230. Multiple Choice: The satisfaction that a consumer gets...
Question The satisfaction that a consumer gets from the consumption of a bundle of goods and
services is referred to as:
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231. Multiple Choice: Reference: Ref 10-22 (Table: Alaina’…
Question
Reference: Ref 10-22
(Table: Alaina‘s Utility from Consuming Cups of Coffee) Look at the table Alaina‘s Utility from
Consuming Cups of Coffee. Given the information in the table, Alaina’s total utility from
drinking coffee:
232. Multiple Choice: Reference: Ref 10-22 (Table: Alaina’…
Question
Reference: Ref 10-22
(Table: Alaina‘s Utility from Consuming Cups of Coffee) Look at the table Alaina‘s Utility from
Consuming Cups of Coffee. Alaina’s marginal utility from consuming her sixth cup of coffee is:
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233. Multiple Choice: Reference: Ref 10-22 (Table: Alaina’…
Question
Reference: Ref 10-22
(Table: Alaina‘s Utility from Consuming Cups of Coffee) Look at the table Alaina‘s Utility from
Consuming Cups of Coffee. Diminishing marginal utility:
234. Multiple Choice: If a person’s utility function exhibi...
Question If a person‘s utility function exhibits diminishing marginal utility, this means that his or her
marginal utility curve is:
235. Multiple Choice: George has a weekly income (I) of $50...
Question George has a weekly income (I) of $50, which he uses to purchase doughnuts (D) and coffee
(C). If the price of a doughnut is $1 and the price of coffee is $2.50, his budget constraint can
be expressed as:
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236. Multiple Choice: George has a weekly income (I) of $50...
Question George has a weekly income (I) of $50, which he uses to purchase doughnuts (D) and coffee
(C). If the price of a doughnut is $1 and the price of coffee is $2.50, which of the following
consumption bundles lies beyond George‘s budget constraint?
237. Multiple Choice: George has a weekly income (I) of $50...
Question George has a weekly income (I) of $50, which he uses to purchase doughnuts (D) and coffee
(C). The price of a doughnut is $1 and the price of coffee is $2.50. Suppose George’s income
increases to $100 and the prices of both doughnuts and coffee remain unchanged. Given this
income change, one would expect George‘s budget line:
238. Multiple Choice: George has a weekly income (I) of $50...
Question George has a weekly income (I) of $50, which he uses to purchase doughnuts (D) and coffee
(C). The price of a doughnut is $1 and the price of coffee is $2.50. Suppose George’s income
drops to $25 and the prices of doughnuts and coffee each fall to one-half their initial prices.
One would expect George’s budget line to:
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