CHAPTER 6: Demand
MULTIPLE CHOICE
1. In Problem 1, if Charlie’s utility function were X 5A XB, if apples cost 70 cents each, and if bananas cost
10 cents each, Charlie’s budget line would be tangent to one of his indifference curves whenever
a.
5XB = 7XA.
b.
XB = XA.
c.
XA = 5XB.
d.
XB = 5XA.
e.
70XA + 10XB = M.
2. In Problem 1, if Charlie’s utility function were X 3A XB, if apples cost 60 cents each, and if bananas cost
10 cents each, Charlie’s budget line would be tangent to one of his indifference curves whenever
a.
3XB = 6XA.
b.
XB = 3XA.
c.
XB = XA.
d.
XA = 3XB.
e.
60XA + 10XB = M.
3. In Problem 1, if Charlie’s utility function were X 5A XB, if apples cost 50 cents each, and if bananas cost
10 cents each, Charlie’s budget line would be tangent to one of his indifference curves whenever
a.
5XB = 5XA.
b.
XB = 5XA.
c.
XB = XA.
d.
XA = 5XB.
e.
50XA + 10XB = M.
4. In Problem 1, if Charlie’s utility function were X 6A XB, if apples cost 90 cents each, and if bananas cost
10 cents each, Charlie’s budget line would be tangent to one of his indifference curves whenever
a.
XA = 6XB.
b.
XB = 6XA.
c.
XB = XA.
d.
6XB = 9XA.
e.
90XA + 10XB = M.
5. In Problem 1, if Charlie’s utility function were X 6A XB, if apples cost 40 cents each, and if bananas cost
10 cents each, Charlie’s budget line would be tangent to one of his indifference curves whenever
a.
XB = XA.
b.
6XB = 4XA.
c.
XB = 6XA.
d.
XA = 6XB.
e.
40XA + 10XB = M.
6. In Problem 1, if Charlie’s utility function were X 2A XB, the price of apples were pA, the price of bananas
were pB, and his income were m, then Charlie’s demand for apples would be
a.
m/(2pA).
b.
0.50pAm.
c.
m/(pA + pB).
d.
0.67m/pA.
e.
1.50pBm/pA.
7. In Problem 1, if Charlie’s utility function were X 3A XB, the price of apples were pA, the price of bananas
were pB, and his income were m, then Charlie’s demand for apples would be
a.
m/(pA + pB).
b.
0.33pAm.
c.
0.75m/pA.
d.
m/(2pA).
e.
1.3pBm/pA.
8. In Problem 1, if Charlie’s utility function were X 2A XB, the price of apples were pA, the price of bananas
were pB, and his income were m, then Charlie’s demand for apples would be
a.
0.67m/pA.
b.
0.50pAm.
c.
m/(pA + pB).
d.
m/(2pA).
e.
1.50pBm/pA.
9. In Problem 1, if Charlie’s utility function were X 5A XB, the price of apples were pA, the price of bananas
were pB, and his income were m, then Charlie’s demand for apples would be
a.
0.20pAm.
b.
m/(2pA).
c.
m/pA + pB).
d.
0.67m/pA.
e.
1.20pBm/pA.
10. In Problem 1, if Charlie’s utility function were X 5A XB, the price of apples were pA, the price of bananas
were pB, and his income were m, then Charlie’s demand for apples would be
a.
0.83m/pA.
b.
m/(2pA).
c.
0.20pAm.
d.
m/(pA + pB).
e.
1.20pBm/pA.
11. Ambrose’s brother Anthony has an income of $75 and a utility function U(x1, x2) = 20x1/21 + x2. The
price of good 1 (nuts) is $2 and the price of good 2 (berries) is $1. How many units of nuts will
Anthony demand?
a.
35
b.
21
c.
23
d.
25
e.
48
12. Ambrose’s brother Augustine has an income of $105 and a utility function U(x1, x2) = 40x1/21 + x2. The
price of good 1 (nuts) is $5 and the price of good 2 (berries) is $1. How many units of nuts will
Augustine demand?
a.
12
b.
16
c.
14
d.
26
e.
30
13. Ambrose’s brother Bartholomew has an income of $114 and a utility function U(x1, x2) = 32x1/21 +
x2. The price of good 1 (nuts) is $4 and the price of good 2 (berries) is $1. How many units of nuts will
Bartholomew demand?
a.
26
b.
14
c.
16
d.
12
e.
30
14. Ambrose’s brother Bartholomew has an income of $109 and a utility function U(x1, x2) = 32x1/21
+ x2. The price of good 1 (nuts) is $4 and the price of good 2 (berries) is $1. How many units of nuts
will Bartholomew demand?
a.
12
b.
26
c.
14
d.
16
e.
30
15. Ambrose’s brother Bartholomew has an income of $133 and a utility function U(x1, x2) = 28x1/21 + x2.
The price of good 1 (nuts) is $2 and the price of good 2 (berries) is $1. How many units of nuts will
Bartholomew demand?
a.
45
b.
59
c.
47
d.
49
e.
96
16. Ambrose’s brother Augustine has an income of $52 and a utility function U(x1, x2) = 18x1/21 + x2. The
price of good 1(nuts) is $3 and the price of good 2(berries) is $1. How many units of berries will
Augustine demand?
a.
25
b.
9
c.
50
d.
15
e.
There is not enough information to determine the answer.
17. Ambrose’s brother Anthony has an income of $205 and a utility function U(x1, x2) = 60x1/21 + x2. The
price of good 1(nuts) is $5 and the price of good 2(berries) is $1. How many units of berries will
Augustine demand?
a.
36
b.
42
c.
50
d.
25
e.
There is not enough information to determine the answer.
18. Ambrose’s brother Anthony has an income of $95 and a utility function U(x1, x2) = 40x1/21 + x2. The
price of good 1(nuts) is $5 and the price of good 2(berries) is $1. How many units of berries will
Augustine demand?
a.
22
b.
30
c.
15
d.
16
e.
There is not enough information to determine the answer.
19. Ambrose’s brother Francis has an income of $170 and a utility function U(x1, x2) = 50x1/21 + x2. The
price of good 1(nuts) is $5 and the price of good 2(berries) is $1. How many units of berries will
Augustine demand?
a.
31
b.
25
c.
45
d.
90
e.
There is not enough information to determine the answer.
20. Ambrose’s brother Francis has an income of $60 and a utility function U(x1, x2) = 20x1/21 + x2. The
price of good 1(nuts) is $5 and the price of good 2(berries) is $1. How many units of berries will
Augustine demand?
a.
10
b.
80
c.
4
d.
40
e.
There is not enough information to determine the answer.
21. In Problem 6, recall that Miss Muffett insists on consuming 2 units of whey per unit of curds. If the
price of curds is $5 and the price of whey is $6, then if Miss Muffett’s income is m, her demand for
curds will be
a.
m/5.
b.
6m/5.
c.
5C + 6W = m.
d.
5m.
e.
m/17.
22. In Problem 6, recall that Miss Muffett insists on consuming 2 units of whey per unit of curds. If the
price of curds is $4 and the price of whey is $4, then if Miss Muffett’s income is m, her demand for
curds will be
a.
4m/4.
b.
m/4.
c.
4C + 4W = m.
d.
4m.
e.
m/12
23. In Problem 6, recall that Miss Muffett insists on consuming 2 units of whey per unit of curds. If the
price of curds is $5 and the price of whey is $4, then if Miss Muffett’s income is m, her demand for
curds will be
a.
5m.
b.
4m/5.
c.
5C + 4W = m.
d.
m/5.
e.
m/13.
24. In Problem 6, recall that Miss Muffett insists on consuming 2 units of whey per unit of curds. If the
price of curds is $5 and the price of whey is $2, then if Miss Muffett’s income is m, her demand for
curds will be
a.
m/5.
b.
2m/5.
c.
5C + 2W = m.
d.
5m.
e.
m/9.
25. In Problem 6, recall that Miss Muffett insists on consuming 2 units of whey per unit of curds. If the
price of curds is $3 and the price of whey is $5, then if Miss Muffett’s income is m, her demand for
curds will be
a.
5m/3.
b.
3m.
c.
3C + 5W = m.
d.
m/3.
e.
m/13.
26. In Problem 8, recall that Casper’s utility function is 3x + y, where x is his consumption of cocoa and y
is his consumption of cheese. If the total cost of x units of cocoa is x2, the price of cheese is $8, and
Casper’s income is $184, how many units of cocoa will he consume?
a.
9
b.
12
c.
23
d.
11
e.
24
27. In Problem 8, recall that Casper’s utility function is 3x + y, where x is his consumption of cocoa and y
is his consumption of cheese. If the total cost of x units of cocoa is x2, the price of cheese is $2, and
Casper’s income is $39, how many units of cocoa will he consume?
a.
5
b.
0
c.
2
d.
3
e.
6
28. In Problem 8, recall that Casper’s utility function is 3x + y, where x is his consumption of cocoa and y
is his consumption of cheese. If the total cost of x units of cocoa is x2, the price of cheese is $4, and
Casper’s income is $56, how many units of cocoa will he consume?
a.
6
b.
5
c.
11
d.
3
e.
12
29. In Problem 8, recall that Casper’s utility function is 3x + y, where x is his consumption of cocoa and y
is his consumption of cheese. If the total cost of x units of cocoa is x2, the price of cheese is $4, and
Casper’s income is $51, how many units of cocoa will he consume?
a.
3
b.
5
c.
11
d.
6
e.
12
30. In Problem 8, recall that Casper’s utility function is 3x + y, where x is his consumption of cocoa and y
is his consumption of cheese. If the total cost of x units of cocoa is x2, the price of cheese is $6, and
Casper’s income is $101, how many units of cocoa will he consume?
a.
9
b.
17
c.
8
d.
6
e.
18
31. In Problem 13, where x is whips and y is leather jackets, if Kinko’s utility function were
U(x, y) = min8x, 4x + 16y, then if the price of whips were $20 and the price of leather jackets were
$60, Kinko would demand
a.
6 times as many whips as leather jackets.
b.
5 times as many leather jackets as whips.
c.
3 times as many leather jackets as whips.
d.
4 times as many whips as leather jackets.
e.
only leather jackets.
32. In Problem 13, where x is whips and y is leather jackets, if Kinko’s utility function were
U(x, y) = min7x, 3x + 12y, then if the price of whips were $20 and the price of leather jackets were
$60, Kinko would demand
a.
4 times as many leather jackets as whips.
b.
3 times as many whips as leather jackets.
c.
5 times as many whips as leather jackets.
d.
2 times as many leather jackets as whips.
e.
only leather jackets.
33. In Problem 13, where x is whips and y is leather jackets, if Kinko’s utility function were
U(x, y) = min6x, 3x + 9y, then if the price of whips were $20 and the price of leather jackets were
$40, Kinko would demand
a.
2 times as many leather jackets as whips.
b.
3 times as many whips as leather jackets.
c.
4 times as many leather jackets as whips.
d.
5 times as many whips as leather jackets.
e.
only leather jackets.
34. In Problem 13, where x is whips and y is leather jackets, if Kinko’s utility function were
U(x, y) = min7x, 5x + 10y, then if the price of whips were $20 and the price of leather jackets were
$20, Kinko would demand
a.
6 times as many leather jackets as whips.
b.
4 times as many leather jackets as whips.
c.
7 times as many whips as leather jackets.
d.
5 times as many whips as leather jackets.
e.
only leather jackets.
35. In Problem 13, where x is whips and y is leather jackets, if Kinko’s utility function were
U(x, y) = min5x, 3x + 6y, then if the price of whips were $20 and the price of leather jackets were
$20, Kinko would demand
a.
3 times as many whips as leather jackets.
b.
4 times as many leather jackets as whips.
c.
2 times as many leather jackets as whips.
d.
5 times as many whips as leather jackets.
e.
only leather jackets.
36. In Problem 7, suppose that it takes 2 square feet to grow a cockleshell and 5 square feet to grow a
silver bell in Mary’s garden. If her space had initially been 90 square feet and were increased to 120
square feet,
a.
she would only increase her planting of silver bells.
b.
she would plant more silver bells and more cockleshells.
c.
she would only increase her planting of cockleshells.
d.
cockleshells would be an inferior good.
e.
she would increase her planting of cockleshells and decrease her planting of silver bells.