Quiz 10: The Rational Consumer

The relation between an individual's consumption bundle and her satisfaction is called a _____ function. A)demand B)production C)consumption D)utility

To say that you can't have too much of a good thing means that,for any good that you enjoy (for example,pizza): A)higher consumption will always lead to higher utility. B)higher consumption will cause utility to decrease at an increasing rate. C)higher consumption will increase utility,but only up to a point;after that,utility will start to decrease. D)it is valid to measure utility in utils.

Economists identify the satisfaction a person derives from the consumption of goods and services as: A)happiness. B)usefulness. C)utility. D)pleasure.

The utility of a good is determined by how much _____ a particular consumer obtains from it. A)satisfaction B)usefulness C)cost D)need fulfillment

Economists describe the satisfaction consumers receive from consuming goods and services as: A)utility. B)income effects. C)budget constraints. D)substitution effects.

Utility is the: A)difference between a firm's total revenue and its total economic cost. B)good not adequately provided by a free market and usually provided by the government. C)satisfaction consumers derive from their consumption of goods and services. D)lowest price that buyers are willing to pay for a given quantity of a good.

For economists,the satisfaction an individual derives from the consumption of goods and services is BEST described as: A)happiness. B)usefulness. C)utility. D)opportunity cost.

In economics,the ability of pumpkin pie to satisfy a want is referred to as its: A)utility. B)usefulness. C)worthiness. D)necessity.

Utility is MOST closely related to: A)usefulness. B)satisfaction. C)requirement. D)necessity.

How much _____ Susan obtains from eating green beans is a measure of the utility of green beans for her. A)efficiency B)usefulness C)cost D)satisfaction

Which good is MOST likely to display increasing marginal utility over some range? A)chicken during the 1920s,when it was considered a luxury good B)paint,because you need enough to paint at least one entire room C)lobsters,which are so expensive that you must eat two to get your money's worth D)peanut butter and jelly sandwiches

The marginal utility of coffee consumption for Steve is the change in _____ generated by consuming an additional cup of coffee. A)total utility B)total consumption C)total demand D)price

On a sparsely populated island,an additional minute of high-speed Internet service would have a _____ marginal utility than in New York City,while in New York City,quiet evenings would carry a _____ marginal utility than on a deserted island. A)lower;higher B)higher;lower C)lower;lower D)higher;higher

Suppose bad weather and pollution dramatically reduce the supply of crawfish in Louisiana next year.This would MOST likely lead to _____ in the marginal utility of crawfish consumption. A)an increase B)a decrease C)no change D)substitution and income effects

An individual gets 5 units of utility from one slice of pizza and 9 units of utility from two slices of pizza.The principle of diminishing marginal utility implies that the total utility from three slices of pizza will be _____ units of utility. A)exactly 12 B)less than 13 C)less than 9 D)more than 14

Which statement BEST describes the principle of diminishing marginal utility? As an individual consumes more of a good: A)the total utility obtained will eventually fall. B)the total utility obtained will eventually become negative. C)the addition to total utility obtained from the nth unit of the good will be less than that obtained from the immediately preceding unit of the good. D)the marginal utility will eventually become negative.

The principle of diminishing marginal utility means that,when Sarah eats pizza,her satisfaction from the second slice of pizza is probably _____ that from the first. A)greater than B)equal to C)less than D)not comparable to

The amount by which total utility changes when an additional unit of a good is consumed is called _____ utility. A)average B)additional C)maximum D)marginal

The amount by which an additional unit of a good or service changes a consumer's total satisfaction,all other things unchanged,is _____ utility. A)marginal B)maximum C)average D)expected

The law of diminishing marginal utility indicates that the slope of the marginal utility curve is generally: A)negative. B)vertical. C)horizontal. D)positive.

The principle of diminishing marginal utility: A)refers to the tendency of total utility to increase until an individual's budget is no longer constrained. B)refers to the tendency of marginal utility to decline as the amount of consumption of a good or service increases. C)indicates that,if a good is inferior,less of it will be purchased when income falls. D)assumes all goods are normal.

Which statement is TRUE if the principle of diminishing marginal utility applies? A)When a customer at the Pie Palace continues to eat more pie,each additional piece of pie gives the same marginal utility. B)When a customer at the Pie Palace continues to eat more pie,each additional piece of pie gives less marginal utility. C)When a customer at the Pie Palace continues to eat more pie,each additional piece of pie lowers total utility. D)The total utility of pie is at a maximum,while the marginal utility of pie is still increasing.

If total utility is rising as more salsa is consumed,we can definitely say that marginal utility is: A)falling. B)constant. C)rising. D)greater than zero.

Freddy has eaten three corn dogs at the county fair,and if he eats another,he will get sick on the roller coaster.Knowing this,and ignoring any impact that price might have on his decision,we can say that,for the fourth corn dog,the: A)total utility is less than zero. B)marginal utility is less than zero. C)total utility curve is still increasing. D)marginal utility curve is still increasing.

Use the following to answer questions 36-37: -(Table: Exercise and Total Utility)Use Table: Exercise and Total Utility.Marginal utility: A)initially decreases but eventually increases as more exercise is consumed. B)always decreases as more exercise is consumed. C)initially increases but eventually decreases as more exercise is consumed. D)initially increases but eventually stays constant as more exercise is consumed.

Use the following to answer questions 36-37: -(Table: Exercise and Total Utility)Use Table: Exercise and Total Utility.The principle of diminishing marginal utility is seen: A)nowhere,as marginal utility is always increasing. B)immediately,from the first hour and beyond. C)between the third and fourth hours. D)after the second hour of exercise.

When an individual continues to eat more turkey,if the principle of diminishing marginal utility applies,each additional serving yields: A)more marginal utility. B)less marginal utility. C)the same amount of marginal utility. D)less total utility.

If total utility is at a maximum,marginal utility is: A)rising. B)at its average value. C)at a maximum. D)zero.

The amount by which total utility rises when an additional slice of pie is consumed is called: A)average utility. B)the law of diminishing returns. C)incremental utility. D)marginal utility.

As you consume more turkey relative to mashed potatoes,the _____ of turkey eventually decreases. A)price B)usefulness C)marginal utility D)demand

The amount by which total utility _____ when an additional unit of a good is consumed is _____. A)changes;average utility B)increases;the income effect C)decreases;maximum utility D)changes;marginal utility

Use the following to answer questions 43-48: -(Table: The Utility of Macaroni and Cheese)Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.The marginal utility she derives from the second serving she eats is _____ units. A)35 B)15 C)10 D)5

Use the following to answer questions 43-48: -(Table: The Utility of Macaroni and Cheese)Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.The marginal utility she derives from the fifth serving she eats is _____ units. A)15 B)10 C)5 D)0

Use the following to answer questions 43-48: -(Table: The Utility of Macaroni and Cheese)Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.The marginal utility she derives from the sixth serving she eats is _____ units. A)-25 B)0 C)25 D)-15

Use the following to answer questions 43-48: -(Table: The Utility of Macaroni and Cheese)Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.Carmen's total utility is maximized after she eats the _____ serving. A)first B)second C)forth D)sixth

Use the following to answer questions 43-48: -(Table: The Utility of Macaroni and Cheese)Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.Carmen's marginal utility from eating macaroni and cheese is 0 for the _____ serving. A)first B)second C)third D)fifth

Use the following to answer questions 43-48: -(Table: The Utility of Macaroni and Cheese)Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.Carmen's marginal utility from eating macaroni becomes negative at the _____ serving. A)first B)second C)fifth D)sixth

The marginal utility of eating sweet potatoes is the: A)change in total utility from consuming an additional serving. B)total utility divided by the number of servings consumed. C)change in total utility divided by the number of servings consumed. D)total utility divided by the change in the number of servings consumed.

Assuming that diminishing marginal utility applies to both pomegranates and bananas,if Vanessa buys more pomegranates and fewer bananas,the _____ utility of pomegranates will _____,and the _____ utility of bananas will _____. A)marginal;fall;marginal;rise B)marginal;rise;marginal;fall C)total;fall;marginal;rise D)marginal;rise;total;rise

Assuming that diminishing marginal utility applies to both goods,if a consumer buys more plastic bins and fewer door hooks,the _____ utility of plastic bins will _____,and the _____ utility of door hooks will _____. A)marginal;fall;marginal;rise B)marginal;fall;marginal;fall C)total;fall;marginal;rise D)marginal;rise;total;rise

Abdul spends all of his income on food (F)and shelter (S).His budget line is given by the equation 5F + 20S = 100.Which consumption bundle is part of his consumption possibilities? A)8 units of F and 3 units of S B)14 units of F and 2 units of S C)0 units of F and 6 units of S D)20 units of F and 15 units of S

Use the following to answer questions 53-57: -(Figure: Budget Lines for Tea and Scones)Use Figure: Budget Lines for Tea and Scones.For months now,Agnes has had $20 per month to spend on tea and scones.The price of each cup of tea and each scone is $1.Which chart shows what will happen to her budget line if her income increases to $25? A)A B)B C)C D)D

Use the following to answer questions 53-57: -(Figure: Budget Lines for Tea and Scones)Use Figure: Budget Lines for Tea and Scones.For months now,Agnes has had $20 per month to spend on tea and scones.The price of each cup of tea and each scone has been $1.Which chart shows what will happen to her budget line if her income decreases to $10? A)A B)B C)C D)D

Use the following to answer questions 53-57: -(Figure: Budget Lines for Tea and Scones)Use Figure: Budget Lines for Tea and Scones.For months now,Agnes has had $20 per month to spend on tea and scones.The price of each cup of tea and each scone has been $1.Which chart shows what will happen to her budget line if the price of a cup of tea falls to $0.50? A)A B)B C)C D)D

Use the following to answer questions 53-57: -(Figure: Budget Lines for Tea and Scones)Use Figure: Budget Lines for Tea and Scones.For months now,Agnes has had $20 per month to spend on tea and scones.The price of each cup of tea and each scone has been $1.Which chart shows what will happen to her budget line if the price of a scone rises to $2? A)A B)B C)C D)D

Use the following to answer questions 53-57: -(Figure: Budget Lines for Tea and Scones)Use Figure: Budget Lines for Tea and Scones.For months now,Agnes has had $20 per month to spend on tea and scones.The price of each cup of tea and each scone has been $1.Which chart shows what will happen to her budget line if the price of both a cup of tea and a scone increase to $2? A)A B)B C)C D)D

Faruq spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.Put tacos on the horizontal axis and milkshakes on the vertical axis.The horizontal intercept for Faruq's budget line is _____ tacos. A)50 B)10 C)5 D)100

Faruq spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.Put tacos on the horizontal axis and milkshakes on the vertical axis.The slope of Faruq's budget line is equal to: A)-1/5. B)-5. C)1/5. D)5.

Faruq spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.Put tacos on the horizontal axis and milkshakes on the vertical axis.If Faruq spends all of his income,the opportunity cost of one taco equals _____ milkshakes. A)2 B)10 C)5 D)1/5

Faruq spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.If Faruq purchases 10 milkshakes,he can purchase _____ tacos. A)10 B)50 C)8 D)18

Faruq spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.If Faruq spends all of his income,the opportunity cost of one milkshake is equal to _____ tacos. A)2 B)10 C)5 D)1/5

Chuck spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.If the price of each good doubles and Chuck's income doubles: A)Chuck's budget line will be unaffected. B)Chuck's budget line will shift out. C)Chuck's budget line will shift in. D)Chuck will be able to buy more of both goods.

Chuck spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.Put tacos on the horizontal axis and milkshakes on the vertical axis.The vertical intercept for Chuck's budget line is _____ milkshakes. A)50 B)10 C)5 D)100

Joe's budget line reflects the _____ available to Joe if he spends _____ of his income. A)consumption bundles;all B)consumption bundles;part C)utility;all D)utility;part

Use the following to answer questions 66-71: -(Figure and Table: The Budget Line)Use Figure and Table: The Budget Line.A(n)_____ in the price of clams would rotate the budget line,changing the intercept on the _____ axis and moving it _____ the origin. A)increase;horizontal;toward B)decrease;horizontal;toward C)increase;vertical;toward D)decrease;vertical;away from

Use the following to answer questions 66-71: -(Figure and Table: The Budget Line)Use Figure and Table: The Budget Line.A(n)_____ in the price of potatoes would rotate the budget line,changing the intercept on the _____ axis and moving it _____ the origin. A)increase;horizontal;away from B)decrease;horizontal;toward C)increase;vertical;toward D)decrease;vertical;toward

Use the following to answer questions 66-71: -(Figure and Table: The Budget Line)Use Figure and Table: The Budget Line.A(n)_____ in the price of clams would rotate the budget line,changing the intercept on the _____ axis and moving it _____ the origin. A)increase;horizontal;away from B)decrease;horizontal;away from C)increase;vertical;toward D)decrease;vertical;away from

Use the following to answer questions 66-71: -(Figure and Table: The Budget Line)Use Figure and Table: The Budget Line.A(n)_____ in the price of potatoes would rotate the budget line,changing the intercept on the _____ axis and moving it _____ the origin. A)increase;horizontal;away from B)decrease;horizontal;toward C)increase;vertical;away from D)decrease;vertical;away from

Use the following to answer questions 66-71: -(Figure and Table: The Budget Line)Use Figure and Table: The Budget Line.An increase in income would: A)rotate the budget line,changing the intercept on the horizontal axis. B)shift the budget line to the left. C)rotate the budget line,changing the intercept on the vertical axis. D)shift the budget line to the right.

Use the following to answer questions 66-71: -(Figure and Table: The Budget Line)Use Figure and Table: The Budget Line.A decrease in income would: A)rotate the budget line,changing the intercept on the horizontal axis. B)shift the budget line to the left. C)rotate the budget line,changing the intercept on the vertical axis. D)shift the budget line to the right.

A consumer's spending is restricted because of: A)marginal utility. B)total utility. C)his or her budget constraint. D)utility maximization.

Whatever the time period in question,Molly's spending will be _____ by her _____. A)unlimited;marginal utility B)limited;marginal utility C)limited;budget D)unlimited;budget

(Scenario: Tom's Budget Constraint)Use Scenario: Tom's Budget Constraint.The combination of _____ music downloads and _____ movies lies ON Tom's budget line. Scenario: Tom's Budget Constraint Tom is trying to decide how to allocate his $50 budget for music downloads and online movie streaming when the price of a music download is $1 and the price of a movie is $5. A)50;10 B)50;0 C)0;5 D)100;5

(Scenario: Tom's Budget Constraint)Use Scenario: Tom's Budget Constraint.The combination of _____ music downloads and _____ movies lies INSIDE Tom's budget line (meaning Tom can afford this combination,but he will not be spending the entire $50). Scenario: Tom's Budget Constraint Tom is trying to decide how to allocate his $50 budget for music downloads and online movie streaming when the price of a music download is $1 and the price of a movie is $5. A)50;10 B)50;0 C)0;5 D)100;5

(Scenario: Tom's Budget Constraint)Use Scenario: Tom's Budget Constraint.The combination of _____ music downloads and _____ movies lies OUTSIDE Tom's budget line (meaning Tom cannot afford this combination). Scenario: Tom's Budget Constraint Tom is trying to decide how to allocate his $50 budget for music downloads and online movie streaming when the price of a music download is $1 and the price of a movie is $5. A)50;10 B)50;0 C)0;5 D)20;5

Juan spends all of his income on packs of baseball cards and boxes of candy.At his current consumption bundle,the marginal utility of baseball card packs is 20 and the marginal utility of candy boxes is 10.Assuming that diminishing marginal utility applies to both goods,if the price of baseball card packs is $10 and the price of candy boxes is $2,Juan should: A)consume more baseball card packs and fewer candy boxes. B)consume more candy boxes and fewer baseball card packs. C)continue to consume the current bundle. D)consume equal numbers of baseball card packs and candy boxes.

At the optimal consumption bundle: A)the marginal utility of all goods consumed is equal. B)the marginal utility per dollar spent is equalized across all goods consumed. C)the price of all goods consumed is equal. D)total utility from all goods consumed is equal.

Diego spends all of his income on milkshakes and french fries.At his current consumption levels,the marginal utility of one milkshake and the marginal utility of one order of french fries are equal.According to the optimal consumption rule,Diego: A)is maximizing his utility. B)is maximizing his utility only if one milkshake and one order of french fries have the same price. C)should buy more milkshakes and fewer fries if a milkshake costs more than an order of fries. D)will maximize his utility by specializing in consumption and buying either milkshakes or fries but not both.

Assume that diminishing marginal utility applies to both coffee and football tickets and that the consumer is spending all of her income.If a consumer purchases a combination of coffee and football tickets such that MU_Coffee/ /P_Coffee = 20 and MU_{Football tickets}/ /P_{Football tickets} = 10,to maximize utility,the consumer should buy _____ coffee and _____ football tickets. A)less;more B)more;fewer C)more;more D)less;fewer

Assume that diminishing marginal utility applies to both dish soap and floor wax and that Minh is spending all of her income.If Minh purchases a combination of dish soap and floor wax such that MU_{Dish soap}/ /P_{Dish soap} = 50 and MU_{Floor wax}/ /P_{Floor wax} = 30,to maximize utility,Minh should buy _____ soap and _____ floor wax. A)less;less B)more;more C)more;less D)less;more

Assume that diminishing marginal utility applies to both ballet slippers and tutus and that Natasha is spending all of her income.If Natasha purchases a combination of ballet slippers and tutus such that MU_Slippers/ /P_Slippers = 20 and MU_Tutus/ /P_Tutus = 5,to maximize utility,Natasha should buy _____ slippers and _____ tutus. A)more;fewer B)fewer;more C)more;more D)fewer;fewer

Assume that diminishing marginal utility applies to both textbooks and concert tickets and that Sun is spending all of his income.If Sun purchases a combination of textbooks and concert tickets such that MU_Textbooks/P_Textbooks = 100 and MU_Tickets/ /P_Tickets = 80,to maximize utility,Sun should buy _____ textbooks and _____ tickets. A)fewer;fewer B)more;fewer C)fewer;more D)more;more

If,for Adam,the marginal utility of ties is greater than the marginal utility of shirts,to maximize utility,Adam should: A)buy more ties and fewer shirts. B)buy more shirts and fewer ties. C)buy the same number of each. D)determine the price of ties and the price of shirts before he decides how many of each to buy.

If a consumer derives more utility by spending an additional $1 on good X,rather than on good Y: A)MU_x/P_x > MU_y/P_y. B)MU_x/P_x = MU_y/P_y. C)MU_x/P_x < MU_y/P_y. D)P_x/MU_x > P_y/MU_y.

Sally devotes all of her income to the consumption of apples and Reese's Peanut Butter Cups.At her current level of consumption,the marginal utility of an apple is 6 and the marginal utility of a Reese's Peanut Butter Cup is 8.Assume that diminishing marginal utility applies to both apples and Reese's Peanut Butter Cups.Suppose the price of an apple is $0.20 and the price of a Reese's Peanut Butter Cup is $0.25.To maximize her total utility,assuming that the goods are divisible,she would: A)consume more Reese's Peanut Butter Cups and fewer apples. B)consume less of both goods. C)consume more apples and fewer Reese's Peanut Butter Cups. D)There is not enough information to justify a change in her current level of consumption.

Sally devotes all of her income to the consumption of apples and Reese's Peanut Butter Cups.At her current level of consumption,the marginal utility of an apple is 6 and the marginal utility of a Reese's Peanut Butter Cup is 8.Assume that diminishing marginal utility applies to both apples and Reese's Peanut Butter Cups.Suppose the price of an apple is $0.10,while the price of a Reese's Peanut Butter Cup is $0.25.To maximize her total utility,assuming that the goods are divisible,she would: A)consume more Reese's Peanut Butter Cups and fewer apples. B)consume less of both goods. C)consume more apples and fewer Reese's Peanut Butter Cups. D)There is not enough information to justify a change in her current level of consumption.

Assume that Siri is consuming the utility-maximizing quantities of pork and chicken.We can conclude that: A)the price of pork equals the price of chicken. B)the marginal utility of pork equals the marginal utility of chicken. C)the ratio of the marginal utility to price is the same for pork as it is for chicken. D)Siri is consuming the same amount of pork and chicken.

Smedley,a careful utility maximizer,consumes peanut butter and ice cream.Assume that both peanut butter and ice cream are normal goods.Right after he achieves the utility-maximizing level of consumption of the two goods,the price of ice cream increases.To adjust to this event,he consumes _____ peanut butter and _____ ice cream. A)more;more B)less;less C)more;less D)less;more

Smedley,a careful utility maximizer,consumes peanut butter and broccoli.Assume that both peanut butter and broccoli are normal goods.Right after he achieves the utility-maximizing level of consumption of the two goods,the price of broccoli increases.To adjust to this event,he consumes _____ peanut butter and _____ broccoli. A)more;less B)less;less C)more;more D)less;more

Jill,a careful utility maximizer,consumes peanut butter and ice cream.Assume that both peanut butter and ice cream are normal goods.Right after she achieves the utility-maximizing level of consumption of the two goods,the price of peanut butter increases.After she adjusts to this event,the marginal utility of peanut butter goes _____ and that of ice cream goes _____. A)up;up B)down;down C)down;up D)up;down

Kawamura,a careful utility maximizer,consumes peanut butter and ice cream.Assume that both peanut butter and ice cream are normal goods and that diminishing marginal utility applies to both goods.Right after he achieves the utility-maximizing level of consumption of the two goods,the price of peanut butter falls.After he adjusts to this event,the marginal utility of peanut butter goes _____ and that of ice cream goes _____. A)up;up B)down;down C)down;up D)up;down

Marge has spent her entire budget on milk and cookies.The last glass of milk provided Marge with 10 additional utils,and the last cookie provided her with 25 additional utils.The price of a cookie is twice the price of a glass of milk.Assuming that diminishing marginal utility applies to both goods,Marge should consume _____ milk and _____ cookies. A)more;fewer B)less;more C)more;more D)less;fewer

Nancy is consuming her optimal consumption bundle of burritos and margaritas.The marginal utility of her last burrito was 75 utils,and each burrito costs $3.Her marginal utility of her last margarita was 100 utils.What is the price of a margarita? A)$1 B)$2 C)$3 D)$4

The optimal consumption rule for all goods requires the: A)marginal utility of all goods consumed divided by their respective prices to be equal to the budget constraint. B)marginal utility of all goods consumed to exceed the total utility of all goods. C)marginal utility of all goods consumed divided by their respective prices to be equal. D)prices of all goods to be equal.

Faced with two goods to buy,diamonds and silver,a utility-maximizing individual will buy according to which rule? A)The price of diamonds equals the price of silver. B)The marginal utility of diamonds equals the marginal utility of silver. C)The price of diamonds divided by the marginal utility of silver equals the price of silver divided by the marginal utility of diamonds. D)The marginal utility of diamonds divided by the price of diamonds equals the marginal utility of silver divided by the price of silver.

Tori devotes all of her income to the consumption of peanut butter and jelly.She has just discovered that at her current level of consumption the marginal utility of a jar of peanut butter is 5 and the marginal utility of a jar of jelly is 7.Which statement is TRUE? A)To maximize her total utility,Tori should consume more of both goods. B)To maximize her total utility,Tori should consume less of both goods. C)To maximize her total utility,Tori should consume more peanut butter and less jelly. D)There is not enough information provided to justify a change in Tori's level of consumption.

Antonio derives more utility from spending an additional dollar on boots than on gloves.We can assume that: A)the marginal utility per dollar spent on boots is greater than the marginal utility per dollar spent on gloves. B)the marginal utility per dollar spent on boots is equal to the marginal utility per dollar spent on gloves. C)the marginal utility per dollar spent on boots is less than the marginal utility per dollar spent on gloves. D)boots cost less than gloves.

If Paloma is consuming the utility-maximizing quantities of pizza and soda pop: A)the price of pizza equals the price of soda pop. B)the marginal utility of pizza is equal to the marginal utility of soda pop. C)the ratio of the marginal utility to price is the same for pizza as it is for soda pop. D)the total utility of pizza is equal to the total utility of soda pop.

Steven consumes staples and paper clips.He is maximizing his utility in consumption of both goods.The price of staples falls.After the change in price,Steven should consume _____ staples and _____ paper clips. A)more;more B)more;fewer C)fewer;fewer D)fewer;more

Steven consumes staples and paper clips.He is maximizing his utility in consumption of both goods.The price of staples rises.After the change in price,Steven should consume _____ staples and _____ paper clips. A)more;fewer B)more;more C)fewer;more D)fewer;fewer

Steven consumes staples and paper clips.He is maximizing his utility in consumption of both goods.The price of paper clips rises.Assuming that diminishing marginal utility applies to both goods,as Steven adjusts to this event,the marginal utility of staples will _____,and the marginal utility of paper clips will _____. A)rise;fall B)fall;rise C)rise;rise D)fall;fall

Steven consumes staples and paper clips.He is maximizing his utility in consumption of both goods.The price of staples falls.Assuming that diminishing marginal utility applies to both goods,as Steven adjusts to this event,the marginal utility of staples will _____,and the marginal utility of paper clips will _____. A)rise;fall B)rise;rise C)fall;fall D)fall;rise

John consumes pizza and pasta,both normal goods.He is maximizing his utility in consumption of both goods.The price of pasta rises.Assuming that diminishing marginal utility applies to both goods,as John adjusts to this event,the marginal utility of pizza will _____,and the marginal utility of pasta will _____. A)rise;rise B)fall;fall C)fall;rise D)rise;fall

Wolfgang really likes both rutabagas and broccoli.The price of each good is $0.60 per pound and Wolfgang is maximizing utility.At the point of maximal utility,the marginal utility of: A)rutabagas and broccoli is the same. B)rutabagas is greater than the marginal utility of broccoli. C)broccoli is greater than the marginal utility of rutabagas. D)both goods is zero.

Wolfgang really likes both rutabagas and broccoli.Suppose the price of each good is $0.60 per pound and Wolfgang is maximizing utility,consuming 5 pounds of rutabagas and 0.5 pound of broccoli per month.At the point of maximal utility,the marginal utility of: A)the two goods is the same. B)rutabagas is greater than that of broccoli. C)broccoli is greater than that of rutabagas. D)both goods is zero.

(Table: Utility from Milk and Honey)Use Table: Utility from Milk and Honey.The price of milk is $2,and the price of honey is $4.If Max's income is $16,he buys _____ bottle(s)of milk and _____ jar(s)of honey. A)1;1 B)4;2 C)5;4 D)6;0

(Table: Utility from Pizza and Beer)Use Table: Utility from Pizza and Beer.At All-Sports Bar,a bottle of beer costs $4,and a slice of pizza costs $2.Denard has $10 to spend on beer and pizza.To maximize his utility,Denard will consume _____ slice(s)of pizza and _____ bottle(s)of beer. A)5;0 B)3;1 C)1;2 D)4;3

Use the following to answer questions 170-171: -(Table: Utility from Burgers and Milkshakes)Use Table: Utility from Burgers and Milkshakes.David's marginal utilities for milkshakes and burgers are given in the table.The price of milkshakes is $2,and the price of burgers is $5.If David's income is $22,to maximize his utility,he buys _____ shake(s)and _____ burger(s). A)1;1 B)6;0 C)5;1 D)6;2

Use the following to answer questions 170-171: -(Table: Utility from Burgers and Milkshakes)Use Table: Utility from Burgers and Milkshakes.David's marginal utilities for milkshakes and burgers are given in the table.The price of milkshakes is $2,and the price of burgers is $5.If David's income is $10,to maximize his utility,he buys _____ shake(s)and _____ burger(s). A)1;1 B)0;2 C)5;0 D)2;1

Use the following to answer questions 170-171: -(Table: Marginal Utility per Dollar)Use Table: Marginal Utility per Dollar.If Damian has $9 to spend on potatoes and clams,then the utility-maximizing combination is _____ pound(s)of clams and _____ pound(s)of potatoes. A)0;9 B)2;2 C)1;6 D)2;3

Use the following to answer questions 170-171: -(Table: Marginal Utility per Dollar II)Use Table: Marginal Utility per Dollar II.If Manuel has $18 to spend on potatoes and clams,then the utility-maximizing combination is _____ pound(s)of clams and _____ pound(s)of potatoes. A)5;3 B)4;6 C)1;6 D)3;9

Use the following to answer questions 170-171: -(Table: Marginal Utility per Dollar III)Use Table: Marginal Utility per Dollar III.If Liyun has $20 to spend on potatoes and clams,then the utility-maximizing combination is _____ pound(s)of clams and _____ pound(s)of potatoes. A)2;6 B)3;4 C)1;8 D)3;9

Use the following to answer questions 170-171: -(Table: Marginal Utility per Dollar IV)Use Table: Marginal Utility per Dollar IV.If Ashyra has $40 to spend on potatoes and clams,then the utility-maximizing combination is _____ pound(s)of clams and _____ pound(s)of potatoes. A)3;4 B)2;5 C)1;8 D)2;6

Use the following to answer questions 176-183: -(Table: Consumer Equilibrium)Use Table: Consumer Equilibrium.Assume that the price of both goods is $1 per unit,that you consume three units of good X and three units of good Y,and that you are spending all of your income.To maximize utility,assuming that the goods are divisible,you would want to consume _____ of X and _____ of Y. A)less;less B)more;more C)less;more D)more;less

Use the following to answer questions 176-183: -(Table: Consumer Equilibrium)Use Table: Consumer Equilibrium.Assume that the price of both goods is $1 per unit,that you consume four units of good X and two units of good Y,and that you are spending all of your income.To maximize utility,assuming that the goods are divisible,you would consume _____ of X and _____ of Y. A)less;more B)more;more C)less;less D)more;less

Use the following to answer questions 176-183: -(Table: Consumer Equilibrium)Use Table: Consumer Equilibrium.Assume that the price of good X is $2 per unit and the price of good Y is $1 per unit,that you consume three units of good X and three units of good Y,and that you are spending all of your income.To maximize utility,assuming that the goods are divisible,you would consume _____ of X and _____ of Y. A)less;less B)more;more C)less;more D)more;less

Use the following to answer questions 176-183: -(Table: Consumer Equilibrium)Use Table: Consumer Equilibrium.Assume that the price of good X is $1 per unit and the price of good Y is $2 per unit,that you consume 4 units of good X and 2 units of good Y,and that you are spending all of your income.To maximize utility,assuming that the goods are divisible,you would consume _____ of X and _____ of Y. A)less;less B)more;more C)less;more D)more;less

Use the following to answer questions 176-183: -(Table: Consumer Equilibrium)Use Table: Consumer Equilibrium.Assume that goods X and Y both cost $1 per unit and you have $4 to spend on both goods.To maximize utility,you would consume _____ unit(s)of X and _____ unit(s)of Y. A)0;4 B)1;3 C)2;2 D)3;1

Use the following to answer questions 176-183: -(Table: Consumer Equilibrium)Use Table: Consumer Equilibrium.Assume that goods X and Y both cost $1 per unit and you have $7 to spend on both goods.To maximize utility,you would consume _____ units of X and _____ units of Y. A)2;5 B)3;4 C)4;3 D)5;2

Use the following to answer questions 176-183: -(Table: Consumer Equilibrium)Use Table: Consumer Equilibrium.Assume that the price of good X is $5 per unit,that the price of good Y is $1 per unit,and that you have $10 to spend on both goods.To maximize utility,you would consume _____ unit(s)of X and _____ unit(s)of Y. A)0;1 B)1;5 C)4;6 D)5;5

Use the following to answer questions 176-183: -(Table: Consumer Equilibrium)Use Table: Consumer Equilibrium.Assume that the price of good X is $2 per unit,that the price of good Y is $1 per unit,and that you have $10 to spend on both goods.To maximize utility,you would consume _____ units of X and _____ units of Y. A)3;4 B)2;3 C)2;6 D)5;0

Choices that maximize total utility generally produce demand curves that are: A)horizontal. B)upward sloping. C)downward sloping. D)straight lines.

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: A)income effect. B)substitution effect. C)consumer surplus effect. D)marginal-maximizing rule.

The substitution effect of a price change is described by the statement that: A)when the price of canning jars falls,consumers have more real income with the same nominal income and will buy more canning jars. B)when the price of canning jars falls,consumers will substitute these lower-priced canning jars for higher-priced goods. C)the substitution effect is the change in the number of canning jars purchased when the price of spatulas changes. D)the substitution effect shows how a change in income will affect the quantity of a good purchased.

According to the substitution effect,which statement BEST describes why a decrease in the price of LED light bulbs leads to an increase in the quantity of LED light bulbs demanded? A)Buyers have more real income. B)Buyers always purchase fewer substitute goods for LED light bulbs. C)Buyers tend to purchase more of the now less expensive LED light bulbs. D)Buyers tend to purchase more complementary goods to LED light bulbs.

The substitution effect always entails a change in consumption in the _____ direction as (of)the change in _____. A)same;marginal utility B)same;price C)opposite;price D)opposite;the budget

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: A)have more real income. B)purchase fewer substitute goods. C)purchase more of the now less expensive good. D)purchase more complementary goods.

The substitution effect always involves a change in consumption in the _____ direction as (to)the _____ change. A)same;budget B)same;price C)opposite;price D)opposite;budget

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: A)unit-elastic. B)vertical. C)relatively price-elastic. D)horizontal.

A Giffin good is one in which the _____ curve is _____ sloping. A)supply;downward B)demand;downward C)supply;upward D)demand;upward

Jane is a utility-maximizing consumer who is spending her entire budget on the optimal quantity of wallets and eyeglasses.The price of wallets falls.Jane will _____ her consumption of wallets if wallets are a(n)_____ good and (because)the income effect _____ the substitution effect. A)decrease;inferior;is weaker than B)increase;inferior;is stronger than C)increase;normal;reinforces D)decrease;normal;reinforces

Which statement BEST describes the income effect of a price increase? A)The price of bacon increases,so Michelle buys more sausage. B)The price of corn chips increases,so Michelle buys potato chips. C)The tuition at the public university increases,so Michelle attends a community college. D)Michelle's apartment rent increases,so she cancels her subscription to a monthly magazine.

The demand curve for a normal good will always slope downward because: A)the substitution effect and the income effect reinforce each other,and the substitution effect always displays an inverse relation between price and quantity demanded. B)the substitution effect and the income effect reinforce each other,and the income effect always displays an inverse relation between price and quantity demanded. C)even though the substitution effect and the income effect move in opposite directions,the substitution effect dominates,and it always displays an inverse relation between price and quantity demanded. D)even though the substitution effect and the income effect move in opposite directions,the income effect dominates,and it always displays an inverse relation between price and quantity demanded.

For most goods,demand curves slope downward because: A)marginal utility rises as quantity demanded increases. B)the substitution effect constitutes almost the entire effect of a price change,and this effect always causes quantity demanded and price to be inversely related. C)the income effect constitutes almost the entire effect of a price change,and this effect always causes quantity demanded and price to be inversely related. D)the income and substitution effects work in opposite directions.

The income effect of a price change is the effect on consumption changes as a result of a change in: A)income when all prices change in the same proportion. B)purchasing power caused by a change in the price of the good. C)income caused by a change in the price of labor. D)income sufficient to offset the effect of a price change.

The income effects of a change in price are most important for goods that: A)take up a substantial share of a consumer's spending. B)are very inexpensive. C)are imported. D)are normal.

Which statement is FALSE? A)A Giffin good must be an inferior good. B)A Giffin good must be such that the income effect and the substitution effect move in opposite directions,and the income effect outweighs the substitution effect. C)A Giffin good must be such that the substitution effect outweighs the income effect for an inferior good. D)A Giffin good must have an upward-sloping demand curve.

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: A)an inferior good. B)nasty tasting. C)a normal good. D)expensive.

The income effect can refer to a change in: A)income because of a change in business investment. B)money or nominal income because of a change in wages. C)the quantity demanded of a good because of an implicit change in the buyer's income caused by a change in the price of a good or service. D)the quantity demanded of a good because of a change in the buyer's preferences.

Which statement is FALSE? A)The income effect of normal goods counters the substitution effect,so the demand curve slopes upward. B)The income effect and the substitution effect reinforce each other when the price of a normal good changes. C)The income effect represents the decrease in quantity demanded caused by the implicit change in income due to a fall in the price of an inferior good but not of a normal good. D)The substitution effect reflects the change in quantity demanded solely because of a change in the relative price of a good.

When the price of an inferior good falls,the substitution effect contributes to a(n)_____ in the quantity demanded,and the income effect _____ the substitution effect. A)decrease;reinforces B)increase;reinforces C)increase;opposes D)decrease;opposes

Use the following to answer questions 204-205: -(Table: Utility from Candy Bars and Sodas)Use Table: Utility from Candy Bars and Sodas.If Stan consumes two candy bars and two sodas,his total utility will be _____ utils. A)15 B)33 C)18 D)78

Use the following to answer questions 204-205: -(Table: Utility from Candy Bars and Sodas)Use Table: Utility from Candy Bars and Sodas.Stan's daily income is $11,the price of a candy bar is $2,and the price of a soda is $1.Given this budget constraint,Stan will receive the MOST utils from consuming _____ candy bar(s)and _____ sodas. A)3;5 B)1;4 C)5;6 D)2;7

The assumption that a rational consumer seeks to maximize his or her utility implies that utility is measurable according to some objective scale.

Gehrig's utility from the consumption of mangoes is measured by the level of satisfaction he gets from only the first mango he buys and eats.

The marginal utility of a good is used to describe any good (such as a mushroom brush or a shrimp deveiner)that has only limited usefulness.

If Joe drinks iced tea while he is mowing his yard,he will probably derive a lower marginal utility from his sixth glass of iced tea than from his first glass.

Mary,an avid gardener,plans to spend 8 hours working in her garden.It takes her 45 minutes to prune a bush and 30 minutes to fertilize a tree.If she prunes eight bushes,she will still have enough time to fertilize six trees.

A person's consumption possibilities include all points on their budget line as well as all points below the budget line.

The optimal consumption bundle is the combination of goods that lies above the budget constraint.

Professor Makrung spends his entire weekly income of $700 on economics books (E)and coffee (C).The price of an economics book (P_E)is $50,and the price of a cup of coffee (P_C)is $2.If the professor buys 10 economics books and 50 cups of coffee per week,he finds that MU_E = 75 and MU_C = 3.This implies that a consumption bundle consisting of 10 economics books and 50 cups of coffee per week maximizes the professor's utility.

Mikaela is buying a new motorcycle.She has narrowed her choices to a BMW Classic Montauk or a Honda Valkyrie Rune.She likes the Honda exactly twice as much,but it costs about 40% more.If both bikes are in her budget,she should buy the Honda.

If the price of laundry detergent equals the price of dishwashing powder,then a utility-maximizing consumer will always buy equal amounts of laundry detergent and dishwashing powder.

At Frankie's Buy-the-Slice Pizza,Bill eats three slices of pizza and then realizes that he enjoyed the second slice more than the third.Even though the price per slice is just $1,the utility-maximizing decision is to quit eating now since Bill has reached diminishing marginal utility.

At Frankie's Buy-the-Slice Pizza,Brian eats eight slices of pizza.He says that,because pizza is $2 per slice,the utility-maximizing decision is to eat until your marginal utility per dollar is zero.Brian's explanation is correct.

If the marginal utility of hot dogs exceeds the marginal utility of french fries,then the consumer should necessarily adjust their consumption toward eating more hot dogs and fewer french fries.

If the price of pecan rolls is $2,the price of a gyro is $6,and the marginal utility of the last pecan roll consumed is 12,then the marginal utility of the last gyro consumed for a consumer purchasing the optimal consumption bundle of pecan rolls and gyros is 36.

Suppose Sirach knows that the price of doughnuts is $3 and the price of cupcakes is $4.He also knows that the next doughnut he consumes will increase his total utility by 6 utils and the next cupcake will increase his total utility by 10 utils.Assuming he has enough money to buy either,Sirach should buy a doughnut next.

At the optimal consumption bundle,the marginal utility derived from the last unit of each good purchased is always the same.

The optimal consumption rule implies that,if Pascal is maximizing his utility by spending all of his income on concert tickets and cab rides,with prices equal to P_Tickets and P_Rides,respectively,then it must be the case that MU_Tickets/MU_Rides = P_Tickets/P_Rides.

For most goods,the income effect has no significant effect on individual consumption.

If the substitution effect and the income effect of a price change move in opposite directions for a particular good,then the good must be an inferior good.

When the price of Spam (an inferior good)decreased,Dale bought more Spam.For Dale,the income and substitution effects moved in the same direction.

For a Giffin good,the income effect works in the opposite direction from the substitution effect,and the income effect is larger than the substitution effect.

In the standard models in economics,consumers maximize utility because they are: A)rational. B)demand-constrained. C)inferior. D)comfortable.

The satisfaction that a consumer gets from the consumption of a bundle of goods and services is: A)utility. B)rationalization. C)budget constraints. D)income.

Use the following to answer questions 239-241: -(Table: Alaina's Utility from Consuming Cups of Coffee)Use Table: Alaina's Utility from Consuming Cups of Coffee.Given the information in the table,Alaina's total utility from drinking coffee: A)decreases as she consumes additional coffee. B)increases at a decreasing rate as she consumes more coffee. C)stays constant as she consumes more coffee. D)equals 0 utils.

Use the following to answer questions 239-241: -(Table: Alaina's Utility from Consuming Cups of Coffee)Use Table: Alaina's Utility from Consuming Cups of Coffee.Alaina's marginal utility from consuming her sixth cup of coffee is _____ utils. A)43 B)82 C)4 D)0

Use the following to answer questions 239-241: -(Table: Alaina's Utility from Consuming Cups of Coffee)Use Table: Alaina's Utility from Consuming Cups of Coffee.Diminishing marginal utility is: A)not present in Alaina's consumption of coffee since her total utility keeps increasing. B)present in Alaina's consumption of coffee since her total utility increases at a decreasing rate with each cup consumed. C)equal to 0 utils. D)not present since Alaina exhibits increasing marginal utility.

If marginal utility is diminishing,the marginal utility curve is _____ sloping since each additional unit of the good consumed yields _____ satisfaction than the unit that preceded it. A)downward ;less B)upward;more C)downward;more D)upward;less

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: A)D  50 + 2.50C. B)D  50 - 25C. C)D  50 - 0.25C. D)D  50 - 2.50C.

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 consumption bundle lies BEYOND George's budget constraint? A)10C and 25D B)15C and 15D C)5C and 10D D)5C and 5D

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 to: A)shift to the right. B)shift to the left. C)rotate around the coffee axis point. D)not be affected.

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: A)shift to the right. B)shift to the left. C)rotate around one of the axes,but we cannot tell which one. D)stay the same.

Tonya's budget constraint for gallons of gasoline (G)and shirts (S)each month can be expressed by the equation G = 100 - 2S,where G is the number of gallons of gasoline she buys and S is the total number of shirts she buys.Assume that she spends her entire budget each month.If the price of shirts is $10,the price of gasoline is _____ per gallon,and the total amount of income spent on both shirts and gasoline each month is _____. A)$5;$500 B)$2;$100 C)$1;$500 D)$2;$1,000

Tonya's budget constraint for gallons of gasoline (G)and shirts (S)each month can be expressed by the equation G = 100 - 2S,where G is the number of gallons of gasoline she buys and S is the total number of shirts she buys.Assume that she spends her entire budget each month.If the price of shirts is $10,which consumption bundle is NOT feasible for Tonya? A)45 shirts and 100 gallons of gasoline B)50 shirts and 0 gallons of gasoline C)0 shirts and 100 gallons of gasoline D)10 shirts and 5 gallons of gasoline

Tonya's budget constraint for gallons of gasoline (G)and shirts (S)each month can be expressed by the equation G = 100 - 2S,where G is the number of gallons of gasoline she buys and S is the total number of shirts she buys.Assume that she spends her entire budget each month.If the price of shirts is $10,which consumption bundle lies INSIDE Tonya's budget line? A)45 shirts and 100 gallons of gasoline B)50 shirts and 0 gallons of gasoline C)0 shirts and 100 gallons of gasoline D)10 shirts and 5 gallons of gasoline

Consumption bundles that Mei CANNOT afford because the bundles cost more than her income are _____ the budget line. A)within B)beyond C)on D)at the corner of

The consumption bundles that Mei CAN afford but that do not use up her entire income lie _____ the budget line. A)within B)beyond C)on D)at the corner of

Jie consumes three heads of broccoli and six bowls of rice each week,using up her weekly budget for these two items.The price of a head of broccoli is $2,and the price of rice is $4 per bowl.Jie's marginal utility from the last head of broccoli consumed is 4 utils,and her marginal utility from her last bowl of rice is 8 utils.If Jie wants to maximize her utility,she should: A)increase her broccoli consumption and decrease her rice consumption. B)increase her rice consumption and decrease her broccoli consumption. C)not change her consumption of either broccoli or rice. D)stop consuming both goods.

Sam always tries to maximize his utility in his consumption of popcorn and soft drinks.Both of these goods are subject to diminishing marginal utility.Suppose the prices of these goods,along with Sam's budget (and spending)for these items,stay the same,but Sam decides to decrease his consumption of popcorn.Holding everything else constant,this means that Sam must _____ his consumption of soft drinks,and his marginal utility per dollar spent on popcorn will be _____ than it used to be. A)increase;greater B)decrease;greater C)increase;less D)decrease;less

When a consumer maximizes utility,the marginal utility from the last dollar spent on all goods and services in the consumption bundle must be the same.This is referred to as: A)the law of demand. B)the optimal consumption rule. C)the budget constraint. D)consumption possibilities.

A consumer is attempting to maximize utility in her consumption of goods A and B.If her income and the price of good A do not change but the marginal utility of good B is constant and the price of good B decreases,this will _____ utility per dollar spent on good B. A)decrease the marginal B)not affect the marginal C)decrease the total D)increase the marginal

A decrease in the price of a good,holding income and the prices of all other goods constant,is associated with: A)a positive substitution effect since consumers increase their consumption of the good as the marginal utility per dollar of the good increases. B)a negative substitution effect since consumers decrease their consumption of the good as the marginal utility per dollar spent of the good decreases. C)the consumer purchasing fewer of all goods in the consumption bundle. D)a shift inward of the budget line.

Consuming more of a good that has become cheaper in place of a good that has become relatively more expensive is the: A)income effect. B)substitution effect. C)budget constraint. D)inferior effect.

The income effect will play a greater role in a consumer's spending if the good: A)accounts for a substantial share of the consumer's spending. B)accounts for a small share of the consumer's spending. C)is not subject to a budget constraint. D)is not something the consumer needs.

Housing is a normal good that tends to take up a substantial share of a consumer's spending.An increase in the price of housing will result in: A)both an income and substitution effect to decrease the quantity demanded of housing. B)both an income and substitution effect to increase the quantity demanded of housing. C)the income effect of increasing the quantity demanded of housing and the substitution effect of decreasing the quantity demanded of housing. D)the income effect of decreasing the quantity demanded of housing and the substitution effect of increasing the quantity demanded of housing.

If the price of a good changes so that the income effect and the substitution effect reinforce one another,this means the good is: A)inferior. B)always on the budget line. C)normal. D)not likely to be bought.

Use the following to answer questions 261-264: -(Table: Denise's Consumption of Coffee and Gasoline)Use Table: Denise's Consumption of Coffee and Gasoline.Given the information provided,the price of each cup of coffee is _____ and the price of each gallon of gasoline is _____. A)$2;$2 B)$3;$6 C)$1;$2 D)$3;$3

Use the following to answer questions 261-264: -(Table: Denise's Consumption of Coffee and Gasoline)Use Table: Denise's Consumption of Coffee and Gasoline.Denise will maximize her utility by consuming bundle: A)A. B)B. C)C. D)D.

Use the following to answer questions 261-264: -(Table: Denise's Consumption of Coffee and Gasoline)Use Table: Denise's Consumption of Coffee and Gasoline.When Denise maximizes her utility,her marginal utility per dollar spent on gallons of gasoline equals _____ utils per dollar. A)0.6 B)0.8 C)0.5 D)1.6

Use the following to answer questions 261-264: -(Table: Denise's Consumption of Coffee and Gasoline)Use Table: Denise's Consumption of Coffee and Gasoline.Suppose Denise initially chooses consumption bundle A.She can increase her total utility by: A)consuming more gasoline and less coffee. B)consuming more coffee and less gasoline. C)not consuming more coffee or gasoline. D)consuming more coffee and more gasoline.