Economics Chapter 19
Which industry here is unlikely to exhibit price discrimination?
Supermarkets
In the news article titled "Men vs Women"...what determinant of demand is most likely involved?
Tastes
Refer to Table 19.3. If Michael has $28 to spend, why will three colas and four pretzels not be optimal?
This combination is not affordable
The point where the budget constraint and an indifference curve are tangent
represents the optimal consumption point
Total utility is maximized when
Marginal utility is zero
Refer to Figure 19.2. The total utility of two apples is
11 utils
Refer to table 19.3. If Michael has $40 to spend on cola and pretzels, what is his maximum utility possible?
174
Refer to Table 19.1. The marginal utility Josh enjoys from the fourth slice of pizza is:
5 utils
Which of the following is used to depict all combinations of goods that are affordable with a given income and given prices?
A budget constraint
Refer to Table 19.3. If Michael has $48 to spend on cola and pretzels, what combination should he purchase in order to maximize his utility?
Four colas and four pretzels
The benefit that consumers get when they buy goods at the equilibrium price but were willing to pay more is called
customer surplus
The slope of the budget constraint, when a consumer has reached optimal consumption of two goods, is equal to the:
marginal rate of substitution
If a good had a zero price (i.e. the good was free), a rational person would consume
the good until the marginal utility of the last unit was zero
In table 19.2, diminishing marginal utility occurs:
with all units after the first