# Globale Microeconomics

## Quiz 5 :Applying Consumer Theory

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Three individuals have $1000 and identical preferences for gum, g, and cigarettes, s, as measured by the utility function U(g,s)= 10g0.9s0.1. The price of gum is$9 and the price of cigarettes is $12. What is the market surplus/shortage at a price of$12 when the supply of cigarettes is 5?
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The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks. As the price of snacks rises, Bobby's utility
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-The above figure shows Bobby's indifference map for juice and snacks. It also shows three budget lines resulting from different prices for snacks. Juice and snacks are
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What is the slope of the price consumption curve for two goods, x and y, when preferences are measured by the utility function U(x,y)= x0.5y0.5, the price of good y is $10, income equals$100, and the price of good x increases from $5 to$10?
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As the price of a Giffen good falls, the consumer will
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The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks assuming he has $20 to spend on these goods. Which of the following points are on Bobby's demand curve for snacks? Multiple Choice Answer: Tags Choose question tag Draw two graphs, one directly above the other. On the upper graph, label the vertical axis Good X and label the horizontal axis Good Y. On the lower graph, label the vertical axis the Price of good Y and label the horizontal axis Good Y. In the upper graph, show the income and substitution effects of a decrease in the Price of good Y when Y is a Giffen good. Draw the corresponding demand curve for Good Y in the lower graph. Essay Answer: Tags Choose question tag Suppose a graph is drawn to show a consumer's preferences for football tickets and basketball tickets. The quantity of football tickets is measured on the horizontal axis. If the price-consumption curve is horizontal when the price of football tickets changes, then Multiple Choice Answer: Tags Choose question tag Ten individuals have$100 and identical preferences for picnics, p, and kayak trips, k, where U(p, k)= k0.5p0.5. The price of picnics is $5 and the price per kayak trip is$ 10. What is the shortage/surplus in the market when the supply of picnics totals 120?
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An increase in the price of a good causes
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A demand curve for a Giffen good would be
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Sandy derives utility from consuming "all other goods," g, and clean air (measured by particulate matter removed per m3), a, as measured by the utility function U(g,a)= g0.6a0.4. The price of "all other goods" is $20 and the price of clean air (abatement)equals$10. Brian is the only other consumer in the market for clean air and demands 10 units of clean air. What is the market demand for clean air?
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The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks. This information could be used to determine
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Suppose the quantity of x is measured on the horizontal axis. If the price consumption curve is vertical when the price of x changes, then the demand for x is
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As the price of a good rises, the consumer will experience
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The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks assuming he has \$20 to spend on these goods. Which of the following points are on Bobby's price-consumption curve?
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An individual's demand curve for a good can be derived by measuring the quantities selected as
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If the price-consumption curve is upward sloping when the price of the good measured on the horizontal axis changes, then the demand curve for that good will be upward sloping.
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