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-The table above gives Ali's total utility from consuming bottles of soda and slices of pizza.The price of pizza is $2 per slice and the price of soda is $1 per bottle.Ali has $14 in his budget.When Ali maximizes his utility he buys ________ bottles of soda and ________ slices of pizza. A) 4; 5 B) 6; 4 C) 2; 6 D) 6; 6 E) None of the above answers is correct. -The table above gives Ali's total utility from consuming bottles of soda and slices of pizza.The price of pizza is $2 per slice and the price of soda is $1 per bottle.Ali has $14 in his budget.When Ali maximizes his utility he buys ________ bottles of soda and ________ slices of pizza.


A) 4; 5
B) 6; 4
C) 2; 6
D) 6; 6
E) None of the above answers is correct.

F) A) and D)
G) D) and E)

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-The table above gives Sam's marginal utility schedule for bananas and apples.Sam's fruit budget is $10. a∙If bananas cost $1 per pound and apples cost $2 per bag, what is Sam's marginal utility per dollar for all quantities of both goods? b∙What is the utility maximizing combination of bananas and apples for Sam? c∙If the price of bananas increases to $2 per pound, how does Sam's marginal utility per dollar for bananas change? d∙At the banana price of $2 per pound, what is the new utility maximizing combination of bananas and apples for Sam? e∙List two points on Sam's demand curve for bananas. -The table above gives Sam's marginal utility schedule for bananas and apples.Sam's fruit budget is $10. a∙If bananas cost $1 per pound and apples cost $2 per bag, what is Sam's marginal utility per dollar for all quantities of both goods? b∙What is the utility maximizing combination of bananas and apples for Sam? c∙If the price of bananas increases to $2 per pound, how does Sam's marginal utility per dollar for bananas change? d∙At the banana price of $2 per pound, what is the new utility maximizing combination of bananas and apples for Sam? e∙List two points on Sam's demand curve for bananas.

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a∙The table above has Sam's marginal u...

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-The table above gives the utility Andy receives from different quantities of vanilla ice cream cones.Complete the table. -The table above gives the utility Andy receives from different quantities of vanilla ice cream cones.Complete the table.

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blured image The compl...

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If the price of the good measured on the x-axis becomes relatively cheaper, the budget line will


A) become vertical.
B) become steeper.
C) become flatter.
D) become horizontal.
E) shift rightward and not change its slope.

F) C) and D)
G) D) and E)

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Consumers' preferences are described by


A) budget lines.
B) indifference curves.
C) relative prices.
D) household income.
E) demand curves.

F) B) and C)
G) C) and E)

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The demand curve for macadamia nuts is downward sloping.This slope is because consumers maximize their utility and an increase in the price of macadamia nuts leads to


A) no change in quantity demanded.
B) an increase in the marginal utility per dollar from macadamia nuts.
C) a decrease in the marginal utility per dollar from macadamia nuts.
D) consumers' budget lines rotating outward with their slopes changing.
E) consumers' budget lines shifting outward with no change in their slope.

F) A) and B)
G) None of the above

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In an indifference curve/budget line framework, how does a consumer decide which of all possible combinations of goods to purchase?

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The consumer will select the combination...

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Brenda's marginal utility per dollar from the second hamburger is 20.Her marginal utility from the third hamburger would be


A) less than 20.
B) more than 20.
C) equal to 20.
D) not comparable to the marginal utility per dollar from the second hamburger.
E) some amount, but we need more information to determine how it compares to 20.

F) B) and C)
G) A) and E)

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Explain the paradox of value.

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The paradox of value questions why water...

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An increase in a consumer's budget


A) shifts the budget line outward and does not change its slope.
B) shifts the budget line inward and does not change its slope.
C) rotates the budget line outward around the point where it intersects the x-axis.
D) rotates the budget line inward around the point where it intersects the x-axis.
E) rotates the budget line outward around the point where it intersects the y-axis.

F) A) and E)
G) C) and D)

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Sheryl is maximizing her utility.She notices that her marginal utility from the last package of bubble gum consumed is greater than her marginal utility from the last package of mints consumed.This result means that the


A) price of a package of gum is greater than the price of a package of mints.
B) price of a package of mints is greater than the price of a package of gum.
C) total utility of gum must be falling as more gum is consumed.
D) total utility of mints must be falling as more mints are consumed.
E) More information is needed to determine which, if any, of the above answers is correct.

F) A) and D)
G) A) and C)

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-The figure above shows a consumer's budget line for sodas and DVD rentals.Point a represents an A) affordable combination of sodas and DVDs that spends the entire budget. B) affordable combination of sodas and DVDs that does not spend the entire budget. C) unaffordable combination of sodas and DVDs. D) affordable combination of sodas and DVDs but whether it spends the entire budget cannot be determined from the figure. E) None of the above answers is correct. -The figure above shows a consumer's budget line for sodas and DVD rentals.Point a represents an


A) affordable combination of sodas and DVDs that spends the entire budget.
B) affordable combination of sodas and DVDs that does not spend the entire budget.
C) unaffordable combination of sodas and DVDs.
D) affordable combination of sodas and DVDs but whether it spends the entire budget cannot be determined from the figure.
E) None of the above answers is correct.

F) B) and C)
G) B) and E)

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If a person consumes only two goods, which of the following is NOT necessary for a consumer to be at his or her best affordable point of consumption?


A) The consumer chooses a bundle of goods that lies on his or her budget line.
B) The consumer is on his or her highest attainable indifference curve.
C) The consumer chooses equal amounts of both goods.
D) The marginal rate of substitution between the two goods is equal to the relative price of those two goods.
E) The indifference curve is tangent to the budget line.

F) D) and E)
G) B) and C)

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Sue consumes oysters and clams.Pounds of oysters are measured on the y-axis and pounds of clams on the x-axis.If the slope of Sue's budget line is 5 pounds of oysters per pound of clams, Sue must


A) give up 5 pounds of clams to obtain 1 pound of oysters.
B) give up 5 pounds of oysters to obtain 1 pound of clams.
C) pay $5 for a pound of clams only.
D) pay $5 for a pound of oysters only.
E) pay $5 for a pound of clams and pay $5 for a pound of oysters.

F) B) and E)
G) A) and E)

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-The table above shows Buffy's utility from wooden stakes and cloves of garlic.The total utility Buffy gets from 5 wooden stakes is A) 7. B) 65. C) 222. D) 122. E) None of the above answers is correct. -The table above shows Buffy's utility from wooden stakes and cloves of garlic.The total utility Buffy gets from 5 wooden stakes is


A) 7.
B) 65.
C) 222.
D) 122.
E) None of the above answers is correct.

F) D) and E)
G) C) and D)

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Which of the following statements is correct?


A) Consumers have the ability to buy everything they desire.
B) A consumer's budget line shows the limits to what a consumer can buy.
C) A consumer's budget line shows the goods with the highest marginal utilities.
D) Rich consumers are unaffected by prices.
E) A budget line changes only if the person's budget changes.

F) A) and B)
G) D) and E)

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-The figure above shows Sarah's budget line.Sarah earns $500 per week selling baskets made out of tree vines.With this money she buys sushi and rose bushes.Each piece of sushi costs $1 and each rose bush costs $10.Sarah will be at what point on her budget line if she spends $500 per week on rose bushes? A) Point a B) Point c C) Point e D) Point f E) Point b -The figure above shows Sarah's budget line.Sarah earns $500 per week selling baskets made out of tree vines.With this money she buys sushi and rose bushes.Each piece of sushi costs $1 and each rose bush costs $10.Sarah will be at what point on her budget line if she spends $500 per week on rose bushes?


A) Point a
B) Point c
C) Point e
D) Point f
E) Point b

F) All of the above
G) B) and C)

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For David, the marginal utility from an additional car is 2,000 units and the marginal utility from an additional vacation is 1,000 units.David is allocating all his budget.Hence to maximize his utility, David will


A) shift his consumption from the vacation to the car.
B) shift his consumption from the car to the vacation.
C) save his budget by not spending it until he can afford both the car and the vacation.
D) buy both the car and the vacation now.
E) possibly do something, but there is not enough information available to determine what he would do.

F) C) and D)
G) A) and E)

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-The figure above gives a consumer's budget line and two indifference curves. a∙At which point is the marginal rate of substitution greater than the relative price? b∙At which point is the marginal rate of substitution less than the relative price? c∙Which point represents the consumer equilibrium? -The figure above gives a consumer's budget line and two indifference curves. a∙At which point is the marginal rate of substitution greater than the relative price? b∙At which point is the marginal rate of substitution less than the relative price? c∙Which point represents the consumer equilibrium?

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a∙The marginal rate of substitution is g...

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What is the marginal rate of substitution and how does it relate to an indifference curve?

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The marginal rate of substitution is the...

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